Increased visibility during order management in a network-based supply chain environment

ABSTRACT

A system, method and article of manufacture are provided for a first business entity to provide a network-based supply chain framework for collaborative order management between at least a second and a third independent business entity, such as a service provider, vendor, reseller, manufacturer and the like. A request for an order is received over a network with an automated system, from at least a second business entity. The order is transmitted over a network, with an automated system, to at least the third business entity. Information is received from the third business entity relating to a status of completion of the order by the third business entity using a network. The progress in completing the order is tracked based on the information received from the third business entity. Progress reports from the tracking are generated periodically; and transmitted to the second business entity using the network.

The present application is a divisional of U.S. application Ser. No.13/525,910, filed Jun. 18, 2012, which is a divisional of U.S.application Ser. No. 10/407,895 (now U.S. Pat. No. 8,271,336), filedApr. 4, 2003, which is a continuation-in-part of U.S. application Ser.No. 09/447,887, filed Nov. 22, 1999, U.S. application Ser. No.09/444,748, filed Nov. 22, 1999, U.S. application Ser. No. 09/444,650filed Nov. 22, 1999, and U.S. application Ser. No. 09/447,622 filed Nov.22, 1999, all of which are incorporated herein by reference.

FIELD OF THE INVENTION

The present invention relates to communication networks for e-Commerceand more particularly to increased visibility during order management ina network-based supply chain environment.

BACKGROUND OF INVENTION

The ability to quickly, easily and efficiently communicate has alwaysbeen a critical component, if not a necessity, for successful businessoperations. Today, as the global economy continues to expand, theability to communicate is even more important. In partial response tothese demands, sophisticated telecommunications equipment has beendeveloped that permits users to quickly and easily place, receive,transfer and switch telephone calls as well as provide advanced featuressuch as call accounting and voice messaging functionality. As thesefeatures have become widely available in local telecommunicationsequipment, such as private branch exchange (PBX) telephone switches,central offices, key and hybrid telephone systems (smalltelecommunications switches), call accounting systems, voice messagingsystems, computer telephony interface (CTI) devices, automatic calldistribution (ACD) devices, internet servers, etc., the demand for andinstallation of these systems has continued to expand. Often, a vastnumber of sites have layered or “integrated” two or more of theaforementioned devices and rarely are these different devices using thesame operating system or of the same brand. More often, these differingdevices include a mixture of operating systems and brands.

Such a mix of advanced telecommunications equipment, however, stilltypically relies upon a significant amount of manual human interactionto install, setup, operate, modify and maintain. Specifically, when anew telephone switch such as a PBX is to be installed at a facility, notonly must the physical equipment itself be installed, but the equipmentmust be configured and programmed to operate as desired by the users ofthe facility. In fact, as more and more advanced features have becomeavailable in the equipment, the burden on the equipment installer toinitially setup and configure these features for the specific needs ofthe end user and the burden on the technician in maintaining andmodifying the equipment, the associated cable records for the equipment,and cable and service activities, has also increased.

When a telephone switch is accompanied by other telecommunicationsequipment, such as voice messaging systems, call accounting systems, CTIdevices, wireless communication servers, or ACD devices, installationinconveniences are still further multiplied. Specifically, many of theseancillary pieces of equipment require additional entry of userinformation that is duplicative of information already entered into themain telephone switching equipment. In such case, not only must atechnician program the main telecommunications switch, but additionaltime (and money) must be spent for programming ancillary equipment withsimilar information. Typically, these systems must be perfectlysynchronized with each other or problems will occur. As a result, thetotal cost of the installation is greatly increased and data entry errorrates are greatly increased.

To further complicate the installation and management of this equipment,each discrete change to one component of a telecommunications systemoften requires additional, similar changes to several other components.Furthermore, these additional changes typically must be done in aspecific order and, since the operating system design of each of thetelecommunications devices often changes from manufacturer tomanufacturer and from device to device, by using an entirely differentcommand structure for each different component. Therefore, when donemanually, a technician must remember different command structures foreach of the devices that require programming and also must remember theorder in which the changes should be made and further may requiredifferent terminals, passwords, procedures, software, etc. Thus, ahighly skilled technician having familiarity with all of the varioustypes of equipment that make up the telecommunications system mustperform these changes, or as is more common, multiple technicians arerequired. Clearly, with even a limited number of devices that requireinstallation, maintenance, or programming, the likelihood of an error isgreatly increased.

Since modem telecommunications equipment provides substantialflexibility in programming to accommodate varying preferences ofdifferent users, it is often necessary to begin the installation of suchequipment by surveying users as to their desires and preferences so thatthese can be accurately reflected through programming of the equipment.This is typically done by distributing a questionnaire to each user toreceive information sufficient to allow the equipment to be properlyconfigured. Thus, not only is there a substantial time commitment neededto review and enter the information received on such questionnaires intothe equipment, but significant effort on the part of each and every useris also required to complete the questionnaires. Typically, collectionof this data and entry of it must wait until the system is installed,while in the present invention described below, this information can bestored externally, checked for omissions, checked for errors orduplications and processed months in advance.

Such disadvantages are particularly highlighted when an outdated PBX orcentral office system is replaced with an improved system, or a changeis made in a present system. In such case each user is typicallysurveyed as to their preferences, as above, and this information ismanually re-entered after installation of the improved PBX or centraloffice system. Thus, since equipment upgrades impact each and every userin a facility, a significant devotion of resources is required. As aresult, the benefits of advanced features provided by improvedtelecommunications equipment often does not outweigh the installationcosts and thus many organizations either do not upgrade their equipment,or delay such upgrades as long as possible.

SUMMARY OF INVENTION

A system, method and article of manufacture are provided for a firstbusiness entity to provide a network-based supply chain framework forcollaborative order management between at least a second and a thirdindependent business entity, such as a service provider, vendor,reseller, manufacturer and the like. A request for an order is receivedover a network with an automated system, from at least a second businessentity. The order is transmitted over a network, with an automatedsystem, to at least the third business entity. Information is receivedfrom the third business entity relating to a status of completion of theorder by the third business entity using a network. The progress incompleting the order is tracked based on the information received fromthe third business entity. Progress reports from the tracking aregenerated periodically; and transmitted to the second business entityusing the network.

DESCRIPTION OF THE DRAWINGS

The foregoing and other objects, aspects and advantages are betterunderstood from the following detailed description of a preferredembodiment of the invention with reference to the drawings, in which:

FIG. 1 is a schematic diagram of a hardware implementation of oneembodiment of the present invention;

FIG. 2 illustrates an embodiment of a system for combined industrysupply management between one or multiple manufacturers and one or manyservice providers and/or vendors and/or resellers;

FIG. 3 is a flowchart for a process for affording a network-based supplychain framework in accordance with an embodiment of the presentinvention;

FIG. 4 is a chart illustrating the relations between benefit areas andcomponents of the e-Commerce Market Space in accordance with anembodiment of the present invention;

FIG. 5 is a schematic illustration of the relationship between areas ofcore competence of both operators and manufacturers for creating anenvironment for new business relationships in accordance with anembodiment of the present invention;

FIG. 6 illustrates some of the components in the eCommerce Market Spaceand illustrative capabilities of the components;

FIG. 7 is a flowchart illustrating a methodology for installationmanagement utilizing a network in accordance with an embodiment of thepresent invention;

FIG. 8 is a flowchart depicting a process for demand and supply planningutilizing a network;

FIG. 9 illustrates a flowchart for a methodology for managing orders ina network-based supply chain in accordance with an embodiment of thepresent invention;

FIG. 10 illustrates a flowchart for a process for managing assets in anetwork-based supply chain in accordance with an embodiment of thepresent invention;

FIG. 11 illustrates a flowchart for a methodology 1100 for providingmaintenance and service in a network-based supply chain in accordancewith an embodiment of the present invention;

FIG. 12 is a block diagram of an exemplary telecommunications system maccordance with a preferred embodiment;

FIG. 13 shows a block diagram of the Network Data Management inaccordance with a preferred embodiment;

FIG. 14 is a flowchart illustrating a Network Data Management process maccordance with a preferred embodiment;

FIG. 15 shows a block diagram of the Customer interface ManagementProcess in accordance with a preferred embodiment;

FIG. 16 is a flowchart illustrating a Customer Interface ManagementProcess in accordance with a preferred embodiment;

FIG. 17 shows a block diagram of the Customer Quality of ServiceManagement Process in accordance with a preferred embodiment;

FIG. 18 is a flowchart illustrating a Customer Quality of ServiceManagement Process in accordance with a preferred embodiment;

FIG. 19 shows a block diagram of the Service Quality Management inaccordance with a preferred embodiment;

FIG. 20 is a flowchart illustrating a Service Quality Management Processm accordance with a preferred embodiment;

FIG. 21 shows a block diagram of the Problem Handling Process inaccordance with a preferred embodiment;

FIG. 22 is a flowchart illustrating a Problem Handling ManagementProcess m accordance with a preferred embodiment;

FIG. 23 shows a block diagram of the Rating and Discounting Process maccordance with a preferred embodiment;

FIG. 24 is a flowchart illustrating Rating and Discounting Process inaccordance with a preferred embodiment;

FIG. 25 shows a block diagram of the Invoice and Collections Process maccordance with a preferred embodiment;

FIG. 26 is a flowchart illustrating an Invoice and Collections Processin accordance with a preferred embodiment;

FIG. 27 is a flowchart showing illustrating media communication over ahybrid network in accordance with a preferred embodiment;

FIG. 28 is a block diagram of an exemplary computer system in accordancewith a preferred embodiment;

FIG. 29 illustrates the CDR and PNR call record formats in accordancewith a preferred embodiment;

FIGS. 30 and 31 collectively illustrate the ECDR and EPNR call recordformats in accordance with a preferred embodiment;

FIG. 32 illustrates the OSR and POSR call record formats in accordancewith a preferred embodiment;

FIGS. 33 and 34 collectively illustrate the EOSR and EPOSR call recordformats in accordance with a preferred embodiment;

FIG. 35 illustrates the SER call record format m accordance with apreferred embodiment;

FIGS. 36 and 37 are control flow diagrams illustrating the conditionsunder which a switch uses the expanded record format in accordance witha preferred embodiment;

FIG. 38 is a control flow diagram illustrating the Change Time command maccordance with a preferred embodiment;

FIG. 39 is a control flow diagram illustrating the Change DaylightSavings Time command in accordance with a preferred embodiment;

FIG. 40 is a control flow diagram illustrating the Network CallIdentifier (NCID) switch call processing in accordance with a preferredembodiment;

FIG. 41 is a control flow diagram illustrating the processing of areceived Network Call Identifier in accordance with a preferredembodiment;

FIG. 42 is a control flow diagram illustrating the generation of aNetwork Call Identifier in accordance with a preferred embodiment;

FIG. 43 is a control flow diagram illustrating the addition of a NetworkCall Identifier to a call record in accordance with a preferredembodiment; and

FIG. 44 is a control flow diagram illustrating the transport of a callin accordance with a preferred embodiment;

FIG. 45 is a flowchart showing a Fault Management Process in accordancewith a preferred embodiment of the present invention;

FIG. 46 is a block diagram showing a Fault Management component inaccordance with a preferred embodiment of the present invention;

FIG. 47 is a flowchart showing a Proactive Threshold Management Processm accordance with a preferred embodiment of the present invention;

FIG. 48 is a flowchart showing a Network Sensing Process in accordancewith one embodiment of the present invention;

FIG. 49 is a flowchart showing an Element Management Process inaccordance with a preferred embodiment of the present invention;

FIG. 50 is a flowchart showing a three tiered customer support process maccordance with a preferred embodiment of the present invention;

FIG. 51 is a flowchart showing an integrated IP telephony process inaccordance with a preferred embodiment of the present invention; and

FIG. 52 is a flowchart showing a Data Mining Process m accordance with apreferred embodiment of the present invention.

FIG. 53A is a block diagram of a partial Web Architecture Frameworkdepicting Security Services, Network Services, Internet Services, ClientServices, and Web Application Services, and FIG. 53B is a partial blockdiagram of a Web Architecture Framework depicting Common Web Services,Directory Services, Management & Operations, and Web Developer Services,in accordance with one embodiment of the present invention;

FIG. 54 is a flowchart illustrating the commerce-related web applicationservices in accordance with one embodiment of the present invention;

FIG. 55 is an illustration of one embodiment of the present inventionfor facilitating a virtual shopping transaction;

FIG. 56 is an illustration of one embodiment of the present inventionfor facilitating a virtual shopping transaction by comparing differentproducts and services;

FIG. 57 is an illustration of one embodiment of the present inventionfor creating a hierarchy of the features of the items selected inaccordance with the customer's profile;

FIG. 58 is an illustration of one embodiment of the present inventionfor facilitating a virtual shopping transaction by ascertaining needs ofa user;

FIG. 59 is an illustration of one embodiment of the present inventionfor facilitating a virtual shopping transaction by generating a solutionbased on the requirements of the user;

FIG. 60 is an illustration of one embodiment of the present inventionfor allowing a user to customize an item for purchase in a virtualshopping environment;

FIG. 61 is an illustration of one embodiment of the present inventionfor advertising in a virtual shopping environment;

FIG. 62 is an illustration of one embodiment of the present inventionfor advertising in a virtual shopping environment;

FIG. 63 is an illustration of yet another embodiment of the presentinvention;

FIG. 64 is an illustration of one embodiment of the present inventionfor automatically generating a contract between an owner of software anda user of the software;

FIG. 65 is an illustration of one embodiment of the present inventionfor automatically generating a contract between an owner of software anda user of the software

FIG. 66 is a flowchart illustrating the content channels-related webapplication services in accordance with one embodiment of the presentinvention;

FIG. 67 is a flowchart illustrating the customer relationshipmanagement-related web application services in accordance with oneembodiment of the present invention;

FIG. 68 is a flowchart illustrating a profile management service of thecustomer relationship management-related web application services inaccordance with one embodiment of the present invention;

FIG. 69 is a flowchart illustrating a profile management service of thecustomer relationship management-related web application services inaccordance with one embodiment of the present invention;

FIG. 70 is a flowchart illustrating the content management andpublishing-related web application services in accordance with oneembodiment of the present invention;

FIG. 71 is a flowchart illustrating the education-related webapplication services in accordance with one embodiment of the presentinvention;

FIG. 72 is a flowchart illustrating one manner of generating aneducational curriculum in the education-related web application servicesin accordance with one embodiment of the present invention;

FIG. 73 is a flowchart illustrating one manner of generating aneducational curriculum in the education-related web application servicesin accordance with one embodiment of the present invention;

FIG. 74 is a flowchart illustrating the web customer-related webapplication services in accordance with one embodiment of the presentinvention;

FIG. 75 is a flowchart illustrating one component of the webcustomer-related web application services in accordance with oneembodiment of the present invention;

FIG. 76 is a flowchart illustrating the security services m accordancewith one embodiment of the present invention;

FIG. 77 is a flowchart illustrating the network services m accordancewith one embodiment of the present invention;

FIG. 78 is a flowchart illustrating the internet services m accordancewith one embodiment of the present invention;

FIG. 79 is a flowchart illustrating the client services m accordancewith one embodiment of the present invention;

FIG. 80 is a flowchart illustrating the data services m accordance withone embodiment of the present invention;

FIG. 81 is a flowchart illustrating the integration capabilities inaccordance with one embodiment of the present invention;

FIG. 82 is a flowchart illustrating the miscellaneous services inaccordance with one embodiment of the present invention;

FIG. 83 is a flowchart illustrating the directory services in accordancewith one embodiment of the present invention;

FIG. 84 is a flowchart illustrating the management and operationsservices m accordance with one embodiment of the present invention; and

FIG. 85 is a flowchart illustrating the web developer services inaccordance with one embodiment of the present invention.

FIG. 86 is a flow diagram depicting considerations to be taken intoconsideration when identifying the core technologies to be used in anarchitecture;

FIG. 87 is a chart that can be utilized to determine whether to useNetcentric technology;

FIG. 88 is a chart that can be utilized to determine whether to useClient Server technology;

FIG. 89 is a chart that can be utilized to determine whether to use Hosttechnology;

FIG. 90 illustrates an eCommerce Application Framework m a DevelopmentArchitecture Framework;

FIG. 91 illustrates the relationship between the eCommerce ApplicationFramework, possible eCommerce Selling Models, enabling technology, andenabling eCommerce Software Packages;

FIG. 92 illustrates a flowchart for a method for automated performanceof services on a network in accordance with an embodiment of the presentinvention;

FIG. 93 shows an agent of the eCommerce Application Framework inaccordance with one embodiment of the present invention;

FIG. 94 illustrates a flowchart for a method for suggesting productsover a network in accordance with an embodiment of the presentinvention;

FIG. 95 illustrates the merchandising component of the eCommerceApplication Framework of the present invention;

FIG. 96 illustrates a flowchart for a method for interacting with a userover a network for personalizing a website in accordance with anembodiment of the present invention;

FIG. 97 depicts the Relationship Management section of the eCommerceApplication Framework in accordance with one embodiment of the presentinvention;

FIG. 98 illustrates a conceptual personalization architecture forimplementing the Relationship Management section of the eCommerceApplication Framework;

FIG. 99 illustrates a simple personalization process;

FIG. 100 is a graphical depiction of extents of personalization;

FIG. 101 illustrates a content catalog that can be used to manage anenterprise's content;

FIG. 102 illustrates an exemplary template with three Dynamic ContentAreas (DCAs) embedded within the template in accordance with a method ofassociating a rule and content to an interaction;

FIG. 103 depicts a ShARE (Selection, Acquisition. Retention, andExtension) customer relationship model which addresses the changes in ashift to interactive marketing;

FIG. 104 illustrates a flowchart for a method for administrating ane-Commerce system on a network in accordance with an embodiment of thepresent invention;

FIG. 105 illustrates components of the maintenance and administrationportion of the of the eCommerce Application Framework in accordance withone embodiment of the present invention;

FIG. 106 illustrates the Order Processing portion of the eCommerceApplication Framework of the present invention;

FIG. 107 illustrates a flowchart for a method for completing atransaction over a network in accordance with an embodiment of thepresent invention;

FIG. 108 depicts an example flow of business capabilities needed forcomplete order processing on an eCommerce implementation;

FIG. 109 illustrates a flowchart for a method for electronically servinga customer over a network in accordance with an embodiment of thepresent invention;

FIG. 110 illustrates key customer services of the Customer Servicesportion of the eCommerce Application Framework;

FIG. 111 illustrates the Security component of the eCommerce ApplicationFramework in accordance with one embodiment of the present invention;

FIG. 112 illustrates a flowchart for a method for ensuring security ofan e-Commerce system on a network in accordance with an embodiment ofthe present invention;

FIG. 113 shows a sample architecture in an online advertising scenario;

FIG. 114 illustrates an exemplary security architecture m an onlineadvertising scenario;

FIG. 115 depicts a sample architecture providing direct network accessto several of customers in order to share specifications, distributeengineering designs, and collaborate on works in progress;

FIG. 116 depicts another exemplary Security Architecture in the scenarioof FIG. 115;

FIG. 117 shows a sample architecture in an interactive customer supportscenario;

FIG. 118 illustrates an exemplary security architecture m a customersupport scenario;

FIG. 119 depicts a sample architecture in an online banking scenario;

FIG. 120 shows an exemplary security architecture in an online bankingscenario;

FIG. 121 illustrates a sample architecture in an online shoppingscenario;

FIG. 122 shows an exemplary security architecture in an online shoppingscenario;

FIG. 123 illustrates a flowchart for a method for manipulating dataabout a customer in an e-Commerce environment in accordance with anembodiment of the present invention;

FIG. 124 illustrates the Decision Support component of the eCommerceApplication Framework in accordance with one embodiment of the presentinvention;

FIG. 125 illustrates the Integration component of the eCommerceApplication Framework in accordance with one embodiment of the presentinvention; and

FIG. 126 illustrates a flowchart for a method for integrating ane-Commerce component into an existing framework of an enterprise inaccordance with an embodiment of the present invention.

FIG. 127 is a representation of a bandwidth market m accordance with oneembodiment of the present invention;

FIG. 128 is a flowchart illustrating a contract negotiation inaccordance with one embodiment of the present invention;

FIG. 129 is a flowchart depicting a method for automatically identifyingan amount of unused bandwidth of a user;

FIG. 130 is a flowchart illustrating another method of identifying theamount of bandwidth of a user;

FIG. 131 is a flowchart illustrating a method for exchanging money forbandwidth;

FIG. 132 is an illustration a summary of a contract negotiation process;

FIG. 133 is an illustration of a more detailed contract negotiationprocess;

FIG. 134 is a flow chart illustrating a method of performing clearingand settlement functions in a bandwidth market environment;

FIG. 135 illustrates in overview a system arrangement for implementingthe over the counter (or other) bandwidth market system of the instantinvention;

FIG. 136 is a flow chart of data processing for qualifying for executionof an order communicated from a branch order entry clerk or accountexecutive;

FIG. 137 illustrates data processing for executing and accounting fororders that have been qualified for execution by the order qualifyingdata processing of FIG. 136;

FIG. 138 is the left portion of a flow chart for the data processing ofblock 13714 of FIG. 137 for updating the inventory cost (average priceper unit of bandwidth AVCST(BWTH)) of the bandwidth BWTH and the runningprofit PR(BWTH) realized from the execution of each trade;

FIG. 139 is the right portion of a flow chart for the data processing ofblock 13714 of FIG. 137 for updating the inventory cost (average priceper unit of bandwidth AVCST(BWTH)) of the bandwidth BWTH and the runningprofit PR(BWTH) realized from the execution of each trade;

FIG. 140 is a flow chart illustrating data processing upon receipt of anew market maker quotation from the bandwidth market system;

FIG. 141 is a block diagram of a bill pay system relying on postalmailed payments;

FIG. 142 is a block diagram of a bill pay system wherein consumers paybills using a bill pay service bureau which has the consumers ascustomers; and

FIG. 143 is a block diagram of a bill pay system where billers initiateautomatic debits from consumers' bank accounts.

DESCRIPTION OF THE PREFERRED EMBODIMENTS

FIG. 1 is a schematic diagram of one possible hardware implementation bywhich the present invention may be carried out. As shown, the presentinvention may be practiced in the context of a personal computer such asan IBM compatible personal computer. Apple Macintosh computer or UNIXbased workstation.

A representative hardware environment is depicted in FIG. 1, whichillustrates a typical hardware configuration of a workstation inaccordance with one embodiment having a central processing unit 110,such as a microprocessor, and a number of other units interconnected viaa system bus 112. The workstation shown in FIG. 1 includes a RandomAccess Memory (RAM) 114, Read Only Memory (ROM) 116, an I/O adapter 118for connecting peripheral devices such as disk storage units 120 to thebus 112, a user interface adapter 122 for connecting a keyboard 124, amouse 126, a speaker 128, a microphone 132, and/or other user interfacedevices such as a touch screen (not shown) to the bus 112, communicationadapter 134 for connecting the workstation to a communication network135 (e.g., a data processing network) and a display adapter 136 forconnecting the bus 112 to a display device 138.

The workstation typically has resident thereon an operating system suchas the Microsoft Windows NT or Windows/95 Operating System (OS), the IBMOS/2 operating system, the MAC OS, or UNIX operating system. Thoseskilled in the art will appreciate that the present invention may alsobe implemented on other platforms and operating systems.

A preferred embodiment of the present invention is written using JAVA,C, and the C++ language and utilizes object oriented programmingmethodology. Object oriented programming (OOP) has become increasinglyused to develop complex applications. As OOP moves toward the mainstreamof software design and development, various software solutions requireadaptation to make use of the benefits of OOP. OOP is a process ofdeveloping computer software using objects, including the steps ofanalyzing the problem, designing the system, and constructing theprogram. An object is a software package that contains both data and acollection of related structures and procedures. Since it contains bothdata and a collection of structures and procedures, it can be visualizedas a self-sufficient component that does not require other additionalstructures, procedures or data to perform its specific task. OOP,therefore, views a computer program as a collection of largelyautonomous components, called objects, each of which is responsible fora specific task. This concept of packaging data, structures, andprocedures together in one component or module is called encapsulation.

In general, OOP components are reusable software modules which presentan interface that conforms to an object model and which are accessed atrun-time through a component integration architecture. A componentintegration architecture is a set of architecture mechanisms which allowsoftware modules in different process spaces to utilize each other'scapabilities or functions. This is generally done by assuming a commoncomponent object model on which to build the architecture. It isworthwhile to differentiate between an object and a class of objects atthis point. An object is a single instance of the class of objects,which is often just called a class. A class of objects can be viewed asa blueprint, from which many objects can be formed.

OOP allows the programmer to create an object that is a part of anotherobject. For example, the object representing a piston engine is said tohave a composition-relationship with the object representing a piston.In reality, a piston engine comprises a piston, valves and many othercomponents; the fact that a piston is an element of a piston engine canbe logically and semantically represented in OOP by two objects.

OOP also allows creation of an object that “depends from” anotherobject. If there are two objects, one representing a piston engine andthe other representing a piston engine wherein the piston is made ofceramic, then the relationship between the two objects is not that ofcomposition. A ceramic piston engine does not make up a piston engine.Rather it is merely one kind of piston engine that has one morelimitation than the piston engine; its piston is made of ceramic. Inthis case, the object representing the ceramic piston engine is called aderived object, and it inherits all of the aspects of the objectrepresenting the piston engine and adds further limitation or detail toit. The object representing the ceramic piston. engine “depends from”the object representing the piston engine. The relationship betweenthese objects is called inheritance.

When the object or class representing the ceramic piston engine inheritsall of the aspects of the objects representing the piston engine, itinherits the thermal characteristics of a standard piston defined in thepiston engine class. However, the ceramic piston engine object overridesthese ceramic specific thermal characteristics, which are typicallydifferent from those associated with a metal piston. It skips over theoriginal and uses new functions related to ceramic pistons. Differentkinds of piston engines have different characteristics, but may have thesame underlying functions associated with it (e.g., how many pistons inthe engine, ignition sequences, lubrication, etc.). To access each ofthese functions in any piston engine object, a programmer would call thesame functions with the same names, but each type of piston engine mayhave different/overriding implementations of functions behind the samename. This ability to hide different implementations of a functionbehind the same name is called polymorphism and it greatly simplifiescommunication among objects.

With the concepts of composition-relationship, encapsulation,inheritance and polymorphism, an object can represent just aboutanything in the real world. In fact, our logical perception of thereality is the only limit on determining the kinds of things that canbecome objects in object-oriented software. Some typical categories areas follows:

-   -   Objects can represent physical objects, such as automobiles in a        traffic-flow simulation, electrical components in a        circuit-design program, countries in an economics model, or        aircraft in an air-traffic-control system.    -   Objects can represent elements of the computer-user environment        such as windows, menus or graphics objects.    -   An object can represent an inventory, such as a personnel file        or a table of the latitudes and longitudes of cities.    -   An object can represent user-defined data types such as time,        angles, and complex numbers, or points on the plane.

With this enormous capability of an object to represent just about anylogically separable matters, OOP allows the software developer to designand implement a computer program that is a model of some aspects ofreality, whether that reality is a physical entity, a process, a system,or a composition of matter. Since the object can represent anything, thesoftware developer can create an object which can be used as a componentin a larger software project in the future.

If 90% of a new OOP software program consists of proven, existingcomponents made from preexisting reusable objects, then only theremaining 10% of the new software project has to be written and testedfrom scratch. Since 90% already came from an inventory of extensivelytested reusable objects, the potential domain from which an error couldoriginate is 10% of the program. As a result, OOP enables softwaredevelopers to build objects out of other, previously built objects.

This process closely resembles complex machinery being built out ofassemblies and sub-assemblies. OOP technology, therefore, makes softwareengineering more like hardware engineering in that software is builtfrom existing components, which are available to the developer asobjects. All this adds up to an improved quality of the software as wellas an increased speed of its development.

Programming languages are beginning to fully support the OOP principles,such as encapsulation, inheritance, polymorphism, andcomposition-relationship. With the advent of the C++ language, manycommercial software developers have embraced OOP. C++ is an OOP languagethat offers a fast, machine-executable code. Furthermore, C++ Issuitable for both commercial-application and systems-programmingprojects. For now, C++ appears to be the most popular choice among manyOOP programmers, but there is a host of other OOP languages, such asSmalltalk, Common Lisp Object System (CLOS), and Eiffel. Additionally,OOP capabilities are being added to more traditional popular computerprogramming languages such as Pascal.

The benefits of object classes can be summarized, as follows:

-   -   Objects and their corresponding classes break down complex        programming problems into many smaller, simpler problems.    -   Encapsulation enforces data abstraction through the organization        of data into small, independent objects that can communicate        with each other. Encapsulation protects the data in an object        from accidental damage, but allows other objects to interact        with that data by calling the object's member functions and        structures.    -   Subclassing and inheritance make it possible to extend and        modify objects through deriving new kinds of objects from the        standard classes available in the system. Thus, new capabilities        are created without having to start from scratch.    -   Polymorphism and multiple inheritance make it possible for        different programmers to mix and match characteristics of many        different classes and create specialized objects that can still        work with related objects in predictable ways.    -   Class hierarchies and containment hierarchies provide a flexible        mechanism for modeling real-world objects and the relationships        among them.    -   Libraries of reusable classes are useful in many situations, but        they also have some limitations. For example:    -   Complexity. In a complex system, the class hierarchies for        related classes can become extremely confusing, with many dozens        or even hundreds of classes.    -   Flow of control. A program written with the aid of class        libraries is still responsible for the flow of control (i.e., it        must control the interactions among all the objects created from        a particular library) The programmer has to decide which        functions to call at what times for which kinds of objects.    -   Duplication of effort. Although class libraries allow        programmers to use and reuse many small pieces of code, each        programmer puts those pieces together in a different way. Two        different programmers can use the same set of class libraries to        write two programs that do exactly the same thing but whose        internal structure (i.e., design) may be quite different,        depending on hundreds of small decisions each programmer makes        along the way. Inevitably, similar pieces of code end up doing        similar things in slightly different ways and do not work as        well together as they should.

Class libraries are very flexible. As programs grow more complex, moreprogrammers are forced to reinvent basic solutions to basic problemsover and over again. A relatively new extension of the class libraryconcept is to have a framework of class libraries. This framework ismore complex and consists of significant collections of collaboratingclasses that capture both the small scale patterns and major mechanismsthat implement the common requirements and design in a specificapplication domain. They were first developed to free applicationprogrammers from the chores involved in displaying menus, windows,dialog boxes, and other standard user interface elements for personalcomputers.

Frameworks also represent a change in the way programmers think aboutthe interaction between the code they write and code written by others.In the early days of procedural programming, the programmer calledlibraries provided by the operating system to perform certain tasks, butbasically the program executed down the page from start to finish, andthe programmer was solely responsible for the flow of control. This wasappropriate for printing out paychecks, calculating a mathematicaltable, or solving other problems with a program that executed in justone way.

The development of graphical user interfaces began to turn thisprocedural programming arrangement inside out. These interfaces allowthe user, rather than program logic, to drive the program and decidewhen certain actions should be performed. Today, most personal computersoftware accomplishes this by means of an event loop which monitors themouse, keyboard, and other sources of external events and calls theappropriate parts of the programmer's code according to actions that theuser performs. The programmer no longer determines the order in whichevents occur. Instead, a program is divided into separate pieces thatare called at unpredictable times and in an unpredictable order. Byrelinquishing control in this way to users, the developer creates aprogram that is much easier to use. Nevertheless, individual pieces ofthe program written by the developer still call libraries provided bythe operating system to accomplish certain tasks, and the programmermust still determine the flow of control within each piece after it'scalled by the event loop. Application code still “sits on top of” thesystem.

Even event loop programs require programmers to write a lot of code thatshould not need to be written separately for every application. Theconcept of an application framework carries the event loop conceptfurther. Instead of dealing with all the nuts and bolts of constructingbasic menus, windows, and dialog boxes and then making these things allwork together, programmers using application frameworks start withworking application code and basic user interface elements in place.Subsequently, they build from there by replacing some of the genericcapabilities of the framework with the specific capabilities of theintended application.

Application frameworks reduce the total amount of code that a programmerhas to write from scratch. However, because the framework is really ageneric application that displays windows, supports copy and paste, andso on, the programmer can also relinquish control to a greater degreethan event loop programs permit. The framework code takes care of almostall event handling and flow of control, and the programmer's code iscalled only when the framework needs it (e.g., to create or manipulate aproprietary data structure).

A programmer writing a framework program not only relinquishes controlto the user (as is also true for event loop programs), but alsorelinquishes the detailed flow of control within the program to theframework. This approach allows the creation of more complex systemsthat work together in interesting ways, as opposed to isolated programs,having custom code, being created over and over again for similarproblems.

Thus, as is explained above, a framework basically is a collection ofcooperating classes that make up a reusable design solution for a givenproblem domain. It typically includes objects that provide defaultbehavior (e.g., for menus and windows), and programmers use it byinheriting some of that default behavior and overriding other behaviorso that the framework calls application code at the appropriate times.

There are three main differences between frameworks and class libraries:

-   -   Behavior versus protocol. Class libraries are essentially        collections of behaviors that one can call when one wants those        individual behaviors in a program. A framework, on the other        hand, provides not only behavior but also the protocol or set of        rules that govern the ways in which behaviors can be combined,        including rules for what a programmer is supposed to provide        versus what the framework provides.    -   Call versus override. With a class library, the code the        programmer instantiates objects and calls their member        functions. It's possible to instantiate and call objects in the        same way with a framework (i.e., to treat the framework as a        class library), but to take full advantage of a framework's        reusable design, a programmer typically writes code that        overrides and is called by the framework. The framework manages        the flow of control among its objects. Writing a program        involves dividing responsibilities among the various pieces of        software that are called by the framework rather than specifying        how the different pieces should work together.    -   Implementation versus design. With class libraries, programmers        reuse only implementations, whereas with frameworks, they reuse        design. A framework embodies the way a family of related        programs or pieces of software work. It represents a generic        design solution that can be adapted to a variety of specific        problems in a given domain. For example, a single framework can        embody the way a user interface works, even though two different        user interfaces created with the same framework might solve        quite different interface problems.

Thus, through the development of frameworks for solutions to variousproblems and programming tasks, significant reductions in the design anddevelopment effort for software can be achieved. A preferred embodimentof the invention utilizes HyperText Markup Language (HTML) to implementdocuments on the Internet together with a general-purpose securecommunication protocol for a transport medium between the client and theNewco. HTTP or other protocols could be readily substituted for HTMLwithout undue experimentation. Information on these products isavailable in T. Bemers-Lee, D. Connoly, “RFC 1866: Hypertext MarkupLanguage-2.0” (Nov. 1995); and R. Fielding, H, Frystyk, T. Bemers-Lee.J. Gettys and J.C. Mogul, “Hypertext Transfer Protocol—HTTP/1.1: HTTPWorking Group Internet Draft” (May 2, 1996). HTML is a simple dataformat used to create hypertext documents that are portable from oneplatform to another. HTML documents are SGML documents with genericsemantics that are appropriate for representing information from a widerange of domains. HTML has been in use by the World-Wide Web globalinformation initiative since 1990. HTML is an application of ISOStandard 8879; 1986 Information Processing Text and Office Systems;Standard Generalized Markup Language (SGML).

To date. Web development tools have been limited in their ability tocreate dynamic Web applications which span from client to server andintemperate with existing computing resources. Until recently, HTML hasbeen the dominant technology used in development of Web-based solutions.However. HTML has proven to be inadequate in the following areas:

-   -   Poor performance;    -   Restricted user interface capabilities;    -   Can only produce static Web pages;    -   Lack of interoperability with existing applications and data;        and    -   Inability to scale.

Sun Microsystem's Java language solves many of the client-side problemsby:

-   -   Improving performance on the client side;    -   Enabling the creation of dynamic, real-time Web applications;        and    -   Providing the ability to create a wide variety of user interface        components.

With Java, developers can create robust User Interface (UI) components.Custom “widgets” (e.g., real-time stock tickers, animated icons, etc.)can be created, and client-side performance is improved. Unlike HTML,Java supports the notion of client-side validation, offloadingappropriate processing onto the client for improved performance.Dynamic, real-time Web pages can be created. Using the above-mentionedcustom UI components, dynamic Web pages can also be created.

Sun's Java language has emerged as an industry-recognized language for“programming the Internet.” Sun defines Java as: “a simple,object-oriented, distributed, interpreted, robust, secure,architecture-neutral, portable, high-performance, multithreaded,dynamic, buzzword-compliant, general-purpose programming language. Javasupports programming for the Internet in the form ofplatform-independent Java applets.” Java applets are small, specializedapplications that comply with Sun's Java Application ProgrammingInterface (API) allowing developers to add “interactive content” to Webdocuments (e.g., simple animations, page adornments, basic games, etc.).Applets execute within a Java-compatible browser (e.g., NetscapeNavigator) by copying code from the server to client. From a languagestandpoint, Java's core feature set is based on C++. Sun's Javaliterature states that Java is basically, “C++ with extensions fromObjective C for more dynamic method resolution.”

Another technology that provides similar function to JAVA is provided byMicrosoft and ActiveX Technologies, to give developers and Web designerswherewithal to build dynamic content for the Internet and personalcomputers. ActiveX includes tools for developing animation, 3-D virtualreality, video and other multimedia content. The tools use Internetstandards, work on multiple platforms, and are being supported by over100 companies. The group's building blocks are called ActiveX Controls,small, fast components that enable developers to embed parts of softwarein hypertext markup language (HTML) pages. ActiveX Controls work with avariety of programming languages including Microsoft Visual C++, BorlandDelphi, Microsoft Visual Basic programming system and, in the future,Microsoft's development tool for Java, code named “Jakarta.” ActiveXTechnologies also includes ActiveX Server Framework, allowing developersto create server applications. One of ordinary skill in the art readilyrecognizes that ActiveX could be substituted for JAVA without undueexperimentation to practice the invention.

eSupply Chain Model

FIG. 2 illustrates an illustrative embodiment of a system 200 forcombined industry supply management between one or multiplemanufacturers 202 and one or many service providers 204 and/or vendorsand/or resellers, etc. For clarity, the majority of the followingdiscussion will discuss service providers, but it should be kept in mindthat the present invention will operate equally well with vendors,resellers, etc.

In more detail, the present invention manages the supply chain betweenthe manufacturer(s) and service provider(s). The industry supplymanagement is centralized in an eCommerce Market Space 206, whichincludes components that manage end-to-end supply chain information suchas demand planning, order fulfillment, scheduling, inventory, etc. Inembodiments of the present invention in which multiple manufacturers andservice providers participate, some of the benefits of the presentinvention include: economies of scale are enabled, rationalization ofprocurement and inventory, rationalization of distribution and logisticsfacilities, and facilitation of the development of an industry-widestandard. More benefits will be set forth below in the discussion ofFIG. 4.

Preferably, the group of manufacturers of such a system each has acommon logistics profile and limitations. The manufacturers may focus onproduction core competence and would also be responsible for strategicand tactical optimization of network assets.

Also preferably, the group of service providers have common networkprofiles. The service providers may focus on customers, new businessesand channels, etc. Further, under the system of the present invention,the service providers would be allowed to migrate from operations focusto strategic technology and market management.

The components may include some or all of an installation managementcomponent 208, a demand and supply component 210, an order managementcomponent 212, a network asset management component 214, a maintenanceand service component 216, a procurement and recovered inventorycomponent 218, and/or a distribution and logistics component 220.

FIG. 3 illustrates a flowchart for a process 300 for affording anetwork-based supply chain framework in accordance with an embodiment ofthe present invention. Installation of a service is managed utilizing anetwork in operation 302. Demand and supply of manufacturer offeringsare planned utilizing the network in operation 304 and orders for themanufacturer offerings are also managed utilizing the network inoperation 306. The network is also utilized to manage network assetsincluding providing maintenance and service for the network assetsutilizing the network (see operations 308 and 310).

Benefit Areas

FIG. 4 is a chart 400 illustrating the relations between benefit areasand components of the e-Commerce Market Space in accordance with anembodiment of the present invention. The benefit areas include a revenueenhancement benefit area 402, a cost reduction benefit area 404, and acapital reduction benefit area 406.

Each benefit area includes a number of associated benefits. Illustrativebenefits associated with revenue enhancement 402 include: (a) fastertime to site integration; (b) better on-line network performance; (c)rapid integration of acquisition; and (d) faster order to cash.Illustrative benefits associated with cost reduction 404 include: (a)duplication reduction; (b) distribution facility rationalization; (c)procurement rationalization; (d) simplified processes; and (e)transportation rationalization. Illustrative benefits associated withcapital reduction 406 include: (a) reduced inventories; and (b)manufacturing capacity utilization.

FIG. 4 also includes a plurality of columns for various components ofthe present invention. These columns may include an InstallationManagement component column 408, a Demand and Supply Planning componentcolumn 410, an Order Management component column 412, a Network AssetManagement component column 414, and a Maintenance and Service componentcolumn 416.

Displayed under each column in FIG. 4 are rectangular boxes that eachhave either a “SP” or a “M” displayed inside them. The “SP” boxesindicate that a particular benefit for that particular component may beattributed to a service provider. The “M” boxes indicate that aparticular benefit for that particular component may be attributed to amanufacturer.

As an example, in an illustrative embodiment of the present invention,the Installation Management component, may include the followingbenefits to the service provider by looking at FIG. 4 in closer detail:faster time to site integration, rapid integration of acquisition,duplication reduction, procurement rationalization, transportationrationalization, and reduced inventories. In this illustrativeembodiment, the Installation Management component may also include thefollowing benefits to the manufacturer: duplication reduction,procurement rationalization, transportation rationalization, and reducedinventories.

With continuing reference to FIG. 4, in this illustrative embodiment ofthe present invention, benefits for the service provider under theDemand and Supply Planning component may include the following: rapidintegration of acquisition, duplication reduction, distribution facilityrationalization, procurement rationalization, reduced inventories, andmanufacturing capacity utilization. Further, benefits for themanufacturer under the Demand and Supply Planning component in thisillustrative embodiment of the present invention may include thefollowing: duplication reduction, distribution facility rationalization,reduced inventories, and manufacturing capacity utilization.

With regards to the Order Management component for this illustrativeembodiment, benefits for the service provider may include the following(as illustrated in FIG. 4): duplication reduction, and procurementrationalization. Benefits for the manufacturer under the OrderManagement component in this illustrative embodiment of the presentinvention may include: faster order to cash, duplication reduction,simplified processes, and manufacturing capacity utilization.

Turning now to the Network Asset Management component column, benefitsfor the service provider for the Network Asset Management component mayinclude: better on-line network performance, rapid integration ofacquisition, and simplified processes.

Lastly, in this illustrative embodiment of the present invention,benefits for the service provider under the Maintenance and Servicecomponent may include: better on-line network performance, anddistribution facility rationalization. Benefits for the manufacturerunder the Maintenance and Service component may include: duplicationreduction, and distribution facility rationalization.

FIG. 5 is a schematic illustration of the relationship between areas ofcore competence of both operators and manufacturers for creating anenvironment for new business relationships in accordance with anembodiment of the present invention. In such an embodiment, corecompetencies of a service provider 502 may include: new customeracquisitions, new customer segmentation strategy, technology life cyclemanagement, and new service offerings. Core competencies of amanufacturer 504 may include: focus on managing the customerrelationship, focus on managing production capacity, focus on researchand development (“R&D”), and focus on market coverage roll out. In suchan embodiment, the network may be planned based on a capability, such ascapacity and features. Availability of sites may be synchronized withthe network roll out and network assets may be jointly optimized.

With continuing reference to FIG. 5, the creating of an environment fornew business relationships with respect to the service provider 506provides an open access channel for new service offerings from themanufacturer so that focus may be moved on a platform release strategyin line with service offerings. The environment for new businessrelationships with respect to the manufacturer 508 may allow for thegaining of the potential to reposition the network as a platform fortheir solutions pipeline where the ability for the manufacturer to buildstrategic alliances with solution integrators becomes a criticaldifferentiator.

FIG. 6 illustrates some of the components in the eCommerce Market Spaceand illustrative capabilities of the components.

Installation Management 208

FIG. 7 illustrates a flowchart for a methodology 700 for installationmanagement utilizing a network in accordance with an embodiment of thepresent invention. In operation 702, information is received from atleast one service provider utilizing a network. This informationincludes information relating to the service provided by the serviceprovider. Also received utilizing the network is information from atleast one manufacturer in operation 704. This information includesinformation relating to manufacturer offerings. The service is matchedin operation 706 to the manufacturer offerings and the service andmanufacturer offerings information are utilized to manage installationsin operation 708.

In an embodiment of the present invention, collaboration between thematched service provider and the manufacturer may also be managed. Insuch an embodiment, the management of collaboration may includefacilitating the transmitting of information between the matched serviceprovider and the manufacturer utilizing the network. In no an aspect ofthis embodiment, a collaborative planning tool may be provided formanaging the collaboration between the matched service provider and themanufacturer.

In another embodiment of the present invention, milestone based projectplanning may be facilitated between the matched service provider and themanufacturer. In a further embodiment, the manufacturer offerings of thematched manufacturer may be displayed to the matched service providerand services provided by the matched service provider may be displayedto the matched manufacturer utilizing the network.

In an aspect of the present invention, the information of themanufacturer may include information relating to the availability of themanufacturer offerings. In such an aspect, the service provider may benotified of the availability of the manufacturer offerings that matchthe service installation information.

In one example of the present invention particularly applicable toinstallation of communication lines between telecommunications providersand their suppliers, a method is provided for use in cooperation with acomputer having memory in a Synchronous Optical Network (SONET) forgenerating an optimized transition plan for the placement ofSelf-Healing Rings (SHR) and the routing of point-to-point demand inaccordance with projected customer demand over a selected multi-periodtime interval.

SONET is both a standard and a set of specifications for building highspeed, digital communications networks that run over fiberoptic cableswhile interfacing with existing electrical protocols and asynchronoustransmission equipment. Fiberoptics has revolutionizedtelecommunications in view of the large bandwidth availability(currently estimated in the hundreds of gigabits per second) whichcontinues to increase with technological advances such as wave-divisionmultiplexing and similar developments in light polarization anddispersion-shifted fibers.

As those skilled in the art will recognize, SONET specifies a digitalhierarchy based on Optical Carrier (OC) rather than electrical levels.SONET does define Synchronous Transport Signals (STS), however, whichare electrical interfaces used as the multiplexing mechanisms withinSONET Network Elements (NE). Network elements combine STS-1s as neededup to STS-N where N is the number of STS-1s, then convert the totalelectrical multiplex to an optical carrier and transmit it over opticalfiber. SONET is multiplexed at the byte level, allowing services to bedynamically placed into the broadband STS for transport. The basic SONETof 64 Kbps per byte is the same speed as the conceptual voice channelDSO allowing SONET to easily integrate all currently used digitalservices into the optical hierarchy.

One of the principal benefits of SONET is that it allows for the directmultiplexing of current network services, such as DS1, DS1C, DS2, andDS3 into the synchronous payload of STS-1. As those skilled in the artwill recognize, the above rates, as in the case of most defined rates,were developed based on existing transmission systems. For example, theDS1 and DS2 signal rates (1.544 million bits per second and 6.312million bits per second) are the transmission rates of the T1 and T2wire pair carrier systems. Initially, one multiplexer, called an M12,was used to combined four DS1 channels into a DS2, and a secondmultiplexer, called an M23, was used to combine seven DS2 channels intoa DS3. Presently, most networks use a single multiplexer termed an M13which combines twenty-eight DS1 channels into a DS3. Of course, one ofthe key attributes of these previous multiplexer designs is that theypermit DS1 signals to be timed independently, i.e. asynchronousmultiplexing. Bits can therefore be sent at different transmission ratesbecause individual channels need not be synchronized to a common timingsource.

The asynchronous DS3 multiplexing standard was implemented in the dayswhen most networks utilized analog technology and the few digitalsystems in existence generated their own clocking systems.Significantly, the transmission specifications for DS1 signals specifythat the bit rate is 1.544 million bits per second, plus or minus 75bps. To compensate for this range, additional bits must therefore be“stuffed” into each DS1 signal before they are multiplexed to a higherrate. Again, as those skilled in the art will recognize, while bitstuffing supports independently clocked input signals, it also makes itnearly impossible to locate individual DS1 or DSO channels within a DS3bit stream. To extract a single channel, a DS3 signal would need tofirst be demultiplexed through M13 components into twenty-eight DS1sbefore the channels could be switched or rearranged. As a result, theprocess of adding or deleting channels is expensive.

In contrast to asynchronous multiplexing, the SONET standard defines aviable alternative which supports greater capacity and efficiency. Inthe SONET multiplexing format, the basic signal transmissionrate—STS-1—operates at 51.84 million bits per second. AN STS-1 can carry28 DS1 signals or one asynchronous DS3. STS-1 signals are thenmultiplexed to produce higher bit rates—STS-2, STS-3, etc. As referencedabove, the other term used to define the SONET signal levels is opticalcarrier. The bit rates are the same in each case, so the bit rate of theSTS-1 equals the bit rate of the OC-1. The only difference is the typeof signal that is being referenced. For example, if the signal is in anelectrical format, it is referred to as an STS. Similarly, if the signalis in an optical format—compatible with a fiber medium—it is referred toas an OC.

The SONET standards define an alternative to asynchronous DS3multiplexing, which describes how to divided STS signals into lowerspeed increments, i.e. virtual tributaries. The major advantage ofsynchronous multiplexing is that when DS1 and other low-speed channelsare multiplexed directly into the STS format, the lower speed channelscan be identified and reconfigured for drop-and-insert. As a result, thedrop-and-insert process can be done simpler with less expense ofhardware then the back-to-back M13 multiplexers used in asynchronousmultiplexing.

Because of the large bandwidth availability in fiber, and the growingvolume of data traffic, disruptions from link and node failures due tocable cuts, for example, become increasingly serious. Networksurvivability has therefore become a major concern for SONET designersand has fueled interest in what is known in the art as “ring”architectures. Such architectures take advantage of the capabilityprovided by synchronous multiplexing in SONET to eliminate the need tobackhaul traffic to central hubs. Thus, at each switching office, theSONET transport node directly accesses the required time slots in thebit stream through the use of modified Add-Drop Multiplexers (ADM). TheSONET ring topology permits the creation of highly survivable networkswhich are viewed in the communications industry as essential forobtaining business for critical data communications.

In most cases, the deployment of SONET rings results in cost savingssince it is far less expensive for carriers to install a fiber ring thento deploy point-to-point links. Consider, for example, a rural route,where linking remote terminals to a central office in a point-to-pointapplication would require six multiplexers—one at each site and at theCentral Office (CO) for each route—and six fibers, two to each site. Ina ring topology, all that is required is one multiplexer at the CO andtwo fibers that go through a multiplexer at each site for a total offour multiplexers and two fibers. Significantly, in the ring topology,working or service traffic is routed in one direction only. If thatfiber fails, traffic is rerouted on a protection fiber to flow in theopposite direction. In this manner, working traffic bypasses the failureto get to its proper destination.

Against this background, it is readily seen that there is significantdebate in the communications industry regarding the type and location ofrings, and in particular, Self-Healing Rings (SHR) to deploy. As thoseskilled in the art will recognize, the directionality of service routingand the protection mechanism are key attributes that distinguishdifferent self-healing ring architectures. For example, a unidirectionalring routes service traffic in only one direction of the ring. On theother hand, a bidirectional ring routes the components of a duplexcircuit in opposite directions on the ring. Similarly, in apath-switched ring, traffic is protected on a per path basis, and theswitching is based on the health of each individual path where it exitsthe ring. Still further, in a line-switched rind, switching is based onthe health of the line between each pair of nodes. Thus, when a line isfaulty, the entire line is switched off to a protection loop at thefailure's boundaries.

The method and system of this example of the present invention utilizesselected mixed-integer programs to efficiently model the informationobtained during the iterative steps of the present invention incooperation with a computer having sufficient memory. Such steps includethe determination of nodes within the SONET under review, identificationof the number of periods within the selected time interval, thedetermination of demand between nodes over this time period, preferablyin units of DS3, and the determination of discounted add-drop costs fora plurality of selected Add/Drop Multiplexers (ADM's) and relatedcomponents based upon projected availability. If the number of nodesunder review is small, once this information is determined, then theoptimized discounted fixed and interconnection costs for this pluralityof ADM's may be determined in accordance with a first selected mixedinteger program. An electrical signal may thereafter be generated forreceipt by the computer memory corresponding to a set of logicalself-healing rings with preliminary, albeit detailed, routinginformation. In contrast, when the number of nodes under review islarge, a heuristic approach is required.

In the heuristic approach, the user is required to load traffic toexisting rings by repetitively identifying the smallest point-to-pointdemand between nodes on existing rings and assigning this demand to therings until no demand left may be routed. Thereafter, a proposed ring iscreated by identifying the greatest unsatisfied point-to-point demandbetween two adjacent nodes and assigning the nodes to the ring. At thispoint, new proposed rings may either be randomly generated until alldemand has been satisfied or, in the alternative, existing rings may beexpanded. If the latter step is selected, expansion is carried out byrepetitively calculating the largest unsatisfied demand of neighbornodes for each of the proposed rings and identifying a plurality ofneighbor nodes having the greatest unsatisfied demand. At that point, adetermination may be made regarding the deficit of each of the proposedrings as well as the identification of a plurality of proposed ringswith the greatest deficit.

Finally, one of the rings with the greatest deficit may be assigned toone of the neighbor nodes and inter-ring traffic may be loaded until alldemand has been routed. Traffic is loaded through a process ofrepetitively identifying demand that can be routed the greatest distancethrough the smallest number of proposed rings and assigning that demandaccordingly. At this point, an electrical signal is summarily generatedalso for receipt by said computer memory and corresponding to a set oflogical self-healing rings with preliminary routing information.

Once logical rings have been determined, whether in accordance with amixed integer program or through repetitive iterations such as in theheuristic approach, the placement of physical self-healing rings andoptimal traffic routing may thereafter be determined by retrieving thelogical SHR and preliminary routing information from memory andmaximizing the percentage of demand covered and minimizing the totalinter-ring traffic cost. This is accomplished through modeling the samein accordance with yet another mixed integer program and generating acorresponding electrical signal for receipt by said computer memory.

Demand and Supply Planning 210

In accordance with an embodiment of the present invention, FIG. 8illustrates a flowchart for a process 800 for demand and supply planningutilizing a network where information from one or more service providersrelating to demand of the service providers is received utilizing thenetwork in operation 802. Received in operation 804 utilizing thenetwork is information from one or more manufacturers relating to theavailable supply of manufacturer offerings. The supply and demand formanufacturer offerings are compared to one another in operation 806 andthis comparison is used in operation 808 to plan future supply anddemand for the manufacturer offerings.

In an embodiment of the present invention, collaborative forecasting mayalso be facilitated between service providers and manufacturersutilizing the network. In another embodiment of the present invention,collaborative network roll-out and planning utilizing the network may befacilitated between service providers and manufacturers. As an option, aroll-out planning tool may be provided for facilitating collaborativenetwork roll-out and planning between the service providers and themanufacturers utilizing the network. In a further embodiment of thepresent invention, the supply of manufacturer offerings betweenmanufacturers and service providers may be coordinated utilizing thenetwork. In such an embodiment, a supply chain planning tool may beprovided for coordinating the supply of manufacturer offerings betweenthe manufacturers and the service providers utilizing the network.

In even another embodiment of the present invention, collaborativecapacity planning may also be facilitated between service providers andmanufacturers utilizing the network. In one aspect of this embodiment, aproduction planning tool may be provided for facilitating thecollaborative capacity planning. In yet a further embodiment of thepresent invention, reverse inventory management may be conducted betweenthe at least one service provider and the at least one manufacturerutilizing the network. Also, the sharing of technology between serviceproviders and manufacturers may be facilitated utilizing the network.

One exemplary embodiment of the present invention is adapted primarilyfor monitoring and controlling customer power demand in a utility suchas electric, gas, and water. In particular, this embodiment of thepresent invention is designed for the collection and transmission ofuser demand requirements and the control of user demand for utilityservices.

Domestic residential demand for electric power is growing atapproximately 2% annually. Although utility companies can maintain pacewith this growth by constructing more peaking and power plants, this isnot necessarily in the best interest of the utility companies andsociety at large. The factors of cost, fuel availability, andenvironmental concerns of both the utility company and the public ingeneral have prompted a shift of emphasis from building additionalgeneration capacity for satisfying the increasing demand to developingand employing a method and means of efficiency improvements, productionfacility optimization, and electrical conservation through demand sidemanagement. Implicit in this is the fact that not all electric powercosts the same to generate. Power generated during peak times is moreexpensive than “base-line” power. For demand side management, utilitycompanies will charge on a cost basis rather than an average use basisthat has existed in the past.

Heretofore, systems have been proposed for communicating utility usageat a customer's home to a central office. For example, U.S. Pat. No.4,086,434 discloses a remote condition reporting system including amicroprocessor with memory and a firmware program, telephone dialingequipment, a clock, and a plurality of inputs from meter readings andthe outputs of sensors. The system initiates telephone calls to theutility company central offices at predetermined intervals to reportutility usage including time of day power usage metering.

This embodiment of the present invention includes a monitoring andcontrol system in which communication occurs through a fully distributeddigital telecommunications switch without a centralized routing andhandling facility. The distribution network is deployable to largenumbers of residential and commercial customers for bi-directionalreal-time communication. While initially designed for use with anelectric power utility, the invention is applicable in monitoring andcontrolling demand for other utilities such as gas or water, as well asfor data services.

A controlled load management and feedback system includes a powercompany central computer facility, a plurality of home monitoring andcontrol networks, and one or more wide band distribution networksinterconnecting home monitoring and control networks and the centralcomputer facility. The distribution networks connect to one or morecentral computer systems through substation gateways via high-speeddigital lines.

The home monitoring and control network is located and operated withinthe power utility customer's home and includes electrical control,monitoring, and measurement devices which allow the utility to monitorelectrical consumption in real time, assist the customer in optimizingelectrical power consumption, and communicate real-time consumption andchanges in consumption to the power utility via the distributionnetwork. Further, the home network permits automatic meter reading andremote service disconnect and reconnect.

The distribution network includes a wire-based (hybrid fiber/coaxialcable) distribution system and an intelligent utility unit (IUU), whichinterfaces with the home network. The IUU controls, communicates, andconfigures devices within the home network, and communicates informationfrom the home network back to the utility central computer via thedistribution system. The distribution network is configured in cells orsmall hubs which support 250-2,000 users at a time.

The utility central computer includes a T-based communication digitalbackbone network which communicates with a distribution network throughgateways typically located within a power substation. The backbonenetwork consolidates traffic from different substations and routes thetraffic to the utility host computer, thus providing access to everyuser on the system. The host computer is able to forecast trends andpredict when demand will exceed supply, thus allowing corrective actionto be taken. The computer can also generate reports for utilitymanagement and consumers showing usage and savings through demandmanagement.

Order Management 212

FIG. 9 illustrates a flowchart for a methodology 900 for managing ordersm a network-based supply chain in accordance with an embodiment of thepresent invention. When a request for an order is received from aservice provider in operation 902, the request is subsequentlytransmitted to one or more manufacturers in operation 904. A network isutilized in operation 906 to receive information from the manufacturerrelating to the status of the completing of the order by themanufacturer. The manufacture's progress in completing the order istracked in operation 908 based on the information received from themanufacturer. Periodic progress reports are generated from the trackingand then transmitted to the service provider utilizing the network inoperations 910 and 912.

In an aspect of the present invention, the order request may be receivedfrom the service provider utilizing the network. Similarly, in anotheraspect of the present invention, the requested order may be transmittedto the at least one manufacture utilizing the network. As an option, anorder tracking tool may be provided from tracking the completion of theorder.

In one embodiment of the present invention, the network may also beutilized to receive information from suppliers of the manufacturerrelating to the status of delivering supplies to the manufacturer aswell as to track the progress in supplying the manufacturer based on theinformation received from the at least one supplier. In such anembodiment, the periodic progress reports may also include informationrelating to the tracking of the at least one supplier. In yet a furtheraspect of the present invention, a network operations link may beprovided for linking to the at least one service provider and the atleast one manufacturer.

An illustrative embodiment of the present invention unitarily andautomatically manages ordering processes based on order informationsupplied by a particular department or section. In order to achievethis, there is provided an order management system for automaticallyplacing an order with one of a plurality of suppliers when orderinformation is input by one of a plurality of orderers.

Accordingly, this embodiment of the present invention includes aterminal unit provided to each of the orderers. The terminal unitincludes means for inputting the order information, which is thentransmitted to a communication network. A central management unitreceives the order information from the terminal unit through thecommunication network. The central management unit includes collectionprocessing means for managing order history information and sectioninformation with respect to each orderer. The collection processingmeans calculates a total cost of previous orders based on the orderhistory information of one of the orderers sending the order informationand order information sent from the one of the orderers. The centralmanagement unit also includes order permission means for permitting anexecution of an ordering process when the calculated total of thepreviously ordered costs is within a budget of the orderer. The budgetmay be included in the section information.

Since an ordering process is executed only when the total cost of theprevious orders for each of the orderers which may correspond to eachdepartment or section in a company, each department or section placingan order can be prevented from exceeding their budget.

The central management unit may further include a supplier selectingprocess for calculating a total cost of previously received order foreach of the suppliers based on the order history information and theorder information, and for selecting one of the suppliers whose totalcost of previously received orders is within an order limit. Thus,exceeding the order limit previously set to each of the suppliers isprevented. Additionally, the supplier selecting process may select oneof the suppliers based on the order history information so that each ofthe suppliers equally receives orders. Optionally, the supplierselecting process manages supplier information including an orderprohibition flag which represents a prohibition of placing an order witha supplier indicated by the order prohibition flag. As another option,the supplier selecting process selects one of the suppliers offering thelowest price when an item to be ordered 1s supplied by a plurality ofsuppliers.

The order management system according to the present invention mayfurther comprise an ordering process for placing an order through thecommunication network with the suppliers based on the order information.

According to one embodiment of the present invention, an ordermanagement process automatically places an order with one of a pluralityof suppliers when order information is input by one of a plurality oforderers. The order management process is performed in an ordermanagement system which has a plurality of terminal units provided tothe respective orderers and a central management unit connected to eachof the terminal units. During the management process, order informationfrom one of the terminal units us sent to the central management unit. Atotal cost of previous orders is calculated based on order historyinformation of one of the orderers sending the order information andorder information sent from the one of orderers by managing the orderhistory information and section information with respect to each of theorderers. An execution of an ordering process is permitted when thecalculated total cost of previous orders is within a budget of theorderer. The budget may be included m the section information.

According to this embodiment of the invention, since an ordering processis executed only when the total cost of the previous orders for each ofthe orderers which may correspond to each department or section in acompany, each department or section placing an order 1s prevented fromexceeding their budget.

Optionally, the order management process may include calculating a totalcost of previously received orders for each of the suppliers based onthe order history information and the order information as well asselecting one of the suppliers whose calculated total cost of previouslyreceived orders is within an order limit. Thus, exceeding the orderlimit previously set to each of the suppliers can be prevented.

Additionally, the order management process may further include selectingthe one of the suppliers based on the order history information so thateach of the suppliers equally receives orders. As an option, an order tobe placed with a supplier may be prohibited by indication by an orderprohibition flag included in supplier information. As another option,one of the suppliers offering the lowest price may be selected when anitem to be ordered is supplied by a plurality of suppliers. As yetanother option, the order management process may further includeautomatically placing an order with the suppliers based on the orderinformation through a communication network connecting the centralmanagement unit to each of the suppliers. It should be noted that theorder management process may be performed by a combination of a generalpurpose computer and a processor readable medium such as a memoryprovided in the computer or a CD-ROM, disk, tape. etc. which storesprogram information used by the computer.

Network Asset Management 214

FIG. 10 illustrates a flowchart for a process 1000 for managing assetsin a network-based supply chain in accordance with an embodiment of thepresent invention. Utilizing a network, information is receivedinformation from at least one service provider in operation 1002. Thisinformation includes information relating to present network assets ofthe service provider. Information is also received utilizing the networkfrom at least one manufacturer in operation 1004. The information fromthe manufacturers includes information relating to present networkassets of the manufacturers. In operation 1006, a determination is madefor optimal network assets needed for the service provider andmanufacturer based on the present network assets of service provider andthe manufacturer. Based on this determination, the optimizing of thenetwork assets is managed in operation 1008.

In an embodiment of the present invention, the life cycle of networkassets of the service providers and the manufacturers may also bemanaged utilizing the network. In an aspect of this embodiment, a lifecycle management model may be utilized for managing the life cycle ofthe network assets. In an additional embodiment of the presentinvention, the sharing of technology between the service providers andthe manufacturers may be facilitated utilizing the network utilizing thenetwork.

In another embodiment of the present invention, network assets of theservice providers and the manufacturers may be tracked utilizing thenetwork. The network assets may be tracked according to: growth of thenetwork asset, capacity of the network asset, technological level of thenetwork asset, and/or amount of the network asset. In one aspect of thisembodiment of the present invention, an asset tracking tool may beutilized for tracking the network assets.

In yet a further embodiment of the present invention, the roll-out ofservices provided by the service providers and manufacturer offeringsprovided by the manufacturers may be managed utilizing the network basedon the received present network asset information. In such anembodiment, a roll-out planning tool may be utilized for managing theroll-out of services provided by the service providers and manufacturerofferings provided by the manufacturers.

Maintenance and Service 216

FIG. 11 illustrates a flowchart for a methodology 1100 for providingmaintenance and service in a network-based supply chain in accordancewith an embodiment of the present invention. In operation 1102, one ormore notices recommended maintenance and service are received utilizinga network from at one or more manufacturers. In operation 1104, one ormore requests for maintenance and service are received utilizing thenetwork from one or more service providers. Maintenance and service isscheduled in operation 1106 utilizing the notices and the requests. Theschedule is transmitted to the manufacturers and the service providersutilizing the network in operation 1108.

In an embodiment of the present invention, the availability of themanufacturers to perform maintenance and service may be monitoredutilizing the network. In this embodiment, the manufacturers arescheduled to perform maintenance and service based on theiravailability. In another embodiment of the present invention, theprogress of the manufacturers in completing scheduled maintenance andservice may be monitored utilizing the network. The schedule may then beadjusted according to the progress of the manufacturers. The adjustedschedule is then transmitted utilizing the network to the manufacturersand the service providers.

In an aspect of the present invention, a scheduling and planning toolmay be provided for scheduling maintenance and service. In anotheraspect of the present invention, a network tracking interface may beprovided for monitoring the progress of the manufacturers in completingscheduled maintenance and service. In a further aspect of the presentinvention, the network may comprise a wide-area network.

Exemplary Embodiment of the Present Invention Adaptable toCommunications Services

The following table is used to clarify terms used in this section of thedescription of the invention.

-   -   AAA Authentication, Authorization, Addressing    -   ADSL Asymmetric Digital Subscriber Line    -   AIN Advanced Intelligent Networks    -   AMA Automatic Message Accounting    -   ATM Asynchronous Transfer Mode    -   BIM Business Integration Methodology    -   BSS Business Support System    -   CDR Call Detail Record    -   DTMF Dual-Tone Multi-Frequency    -   GSM Global System for Mobile Communications    -   IN Intelligent Network    -   IP Internet Protocol    -   JPEP Joint Picture Expert Group    -   LMDS Local Multi-Point Distribution Service    -   MPEG Moving Picture Expert Group    -   NGN Next Generation Network    -   OSS Operational Support Systems    -   PCM Pulse Code Modulation    -   PSTN Public Switched Telephone Network    -   QoS Quality of Service    -   RAS Remote Access Server    -   SCE Service Creation Environment    -   SCP Service Control Point    -   SMDS Switched Multi Megabit Data Service    -   SSP Service Switching Point    -   SONET Synchronous Optical Network    -   STP Service Transfer Point    -   TCP Transmission Control Protocol    -   xDSL Generic name for Digital Subscriber Line    -   (D)WDM (Dense) Wave Division Multiplexing

Data networks today rely heavily on shared medium, packet-based LANtechnologies for both access and backbone connections. The use of packetswitching systems, such as bridges and routers, to connect these LANsinto global internets is now widespread. An internet router must becapable of processing packets based on many different protocols,including IP, IPX, DECNET, AppleTALK, OSI, SNA and others. Thecomplexities of building networks capable of switching packets aroundthe world using these different protocols is challenging to both vendorsand users.

Standards-based LAN systems work reasonably well at transfer rates up toabout 100 Mbps. At transfer rates above 100 Mbps, providing theprocessing power required by a packet switch interconnecting a group ofnetworks becomes economically unrealistic for the performance levelsdesired. This inability to economically “scale up” performance isbeginning to cause restrictions in some user's planned networkexpansions. Also, today's data networks do not provide network managerswith enough control over bandwidth allocation and user access.

Tomorrow's networks are expected to support “multimedia” applicationswith their much greater bandwidth and real-time delivery requirements.The next generation networks should also have the ability to dynamicallyreconfigure the network so that it can guarantee a predetermined amountof bandwidth for the requested quality of service (QOS). This includesproviding access, performance, fault tolerance and security between anyspecified set of end systems as directed by the network's manager. Theconcept is to provide network managers with complete “command andcontrol” over the entire network's infrastructure—not just tell themwhen a failure has occurred.

A new set of technologies known as asynchronous transfer mode (ATM) mayprovide the best, long-term solution for implementing the requirementsof both private and public internets. ATM promises to provide a moreeconomical and scalable set of technologies for implementing theultra-high-performance information networks that will be required toprovide the quality of service users will demand. Thus, over the next 20years, the network infrastructure may change from packet-based standardsto one based on ATM cell switching. While changes in the accompanyingnetwork will be dramatic, it would be desirable for users making thetransition to be able to retain their most recent equipment investment.

Another expected change in tomorrow's networks is a change in data flow.Data flow in today's network typically follows the client-servercomputing model. This is where many clients are all transferring datainto and out of one or more network servers. Clients do not normallytalk to each other; they share data by using the server. While this typeof data exchange will continue, much more of the information flow intomorrow's networks will be peer-to-peer. Since the ultimate goal is atruly distributed computing environment where all systems act as boththe client and server, more of the data flow will follow a peer-to-peermodel. The network will be required to provide more direct access to allpeers wishing to use high-performance backbone internets connecting, forexample, the desktop computers.

The bulk of information transported in the future will be of digitalorigin. This digital information will require a great deal morebandwidth than today's separate voice, fax, and SNA networks whichoperate with acceptable performance using voice grade telephone lines.Voice will shrink as a percentage of total traffic, while other forms ofinformation including image and video will greatly increase. Even whencompressing is available, the bandwidth requirements for both inside andoutside building networks will need to be greatly expanded.

Text files and images can be sent over existing packet-based networksbecause the delivery of this information is not time critical. The newtraffic (voice and video) is delivery time sensitive—variable orexcessive latency will degrade the quality of service and can renderthis information worthless.

The usefulness of packet switching networks for the transmission ofdigital information, particularly burst type information, has long beenrecognized. Such networks are generally point-to-point in nature in thata packet from a single source is directed to a single destination by anaddress attached to the packet. The network responds to the packetaddress by connecting the packet to the appropriate destination.

Packet switching networks are also used which combine burst type datawith the more continuous types of information such as voice, highquality audio, and motion video. Commercialization of voice, video andaudio transmission makes it desirable to be able to connect packets tomultiple destinations, called packet broadcasting. For example, abroadcast video service such as pay-per-view television involves asingle source of video packets, each of which is directed to multiplevideo receivers. Similarly, conferencing capabilities for voicecommunication also require single source to multiple destinationtransmission.

One prior packet broadcast arrangement comprises a network consisting ofa packet duplication arrangement followed by a packet routingarrangement. As a broadcast packet enters this network, packet copiesare made in the packet duplicating arrangement until as many copiesexist as there are destinations for the packet. A translation table lookup is then performed at the duplication arrangement outputs for each ofthe packet copies to provide a different, single destination address foreach copy. All of the packet copies with their new packet addresses arethen applied to the packet routing arrangement, which connects them tothe appropriate network output ports.

In packet switching networks, packets in the form of units of data aretransmitted from a source—such as a user terminal, computer, applicationprogram within a computer, or other data handling or data communicationdevice—to a destination, which may be simply another data handling ordata communication device of the same character. The devices themselvestypically are referred to as users, in the context of the network.Blocks or frames of data are transmitted over a link along a pathbetween nodes of the network. Each block consists of a packet togetherwith control information in the form of a header and a trailer which areadded to the packet as it exits the respective node. The headertypically contains, in addition to the destination address field, anumber of subfields such as operation code, source address, sequencenumber, and length code. The trailer is typically a technique forgenerating redundancy checks, such as a cyclic redundancy code fordetecting errors. At the other end of the link, the receiving nodestrips off the control information, performs the requiredsynchronization and error detection, and reinserts the controlinformation onto the departing packet.

Packet switching arose, in part, to fulfill the need for low cost datacommunications in networks developed to allow access to host computers.Special purpose computers designated as communication processors havebeen developed to offload the communication handling tasks which wereformerly required of the host. The communication processor is adapted tointerface with the host and to route packets along the network;consequently, such a processor is often simply called a packet switch.Data concentrators have also been developed to interface with hosts andto route packets along the network. In essence, data concentrators serveto switch a number of lightly used links onto a smaller number of moreheavily used links. They are often used in conjunction with, and aheadof, the packet switch.

In virtual circuit (VC) or connection-oriented transmission,packet-switched data transmission is accomplished via predeterminedend-to-end paths through the network, in which user packets associatedwith a great number of users share link and switch facilities as thepackets travel over the network. The packets may require storage atnodes between transmission links of the network until they may beforwarded along the respective outgoing link for the overall path. Inconnectionless transmission, another mode of packet-switched datatransmission, no initial connection is required for a data path throughthe network. In this mode, individual datagrams carrying a destinationaddress are routed through the network from source to destination viaintermediate nodes, and do not necessarily arrive in the order in whichthey were transmitted.

The widely-used Telenet public packet switching network routes datausing a two-level hierarchy. The hierarchy comprises a longdistance-spanning backbone network with a multiplicity of nodes or hubs,each of which utilizes a cluster of backbone switches; and smallergeographic area networks with backbone trunks, access lines andclustered lower level switches connected to each hub. Packet-switcheddata is transmitted through the network via VCs, using CCITT(International Telegraph and Telephone Consultative Committee of theInternational Telecommunications Union) X.75 protocol, which is acompatible enhancement of X.25 protocol.

For a communication session to proceed between the parties to aconnection, it is essential that data be presented in a form that can berecognized and manipulated. The sequence of required tasks at each end,such as the format of the data delivered to a party, the rate ofdelivery of the data, and resequencing of packets received out of order,is generally handled in an organized manner using layered communicationarchitectures. Such architectures address the two portions of thecommunications problem, one being that the delivery of data by an enduser to the communication network should be such that the data arrivingat the destination is correct and timely, and the other being that thedelivered data must be recognizable and in proper form for use. Thesetwo portions are handled by protocols, or standard conventions forcommunication intelligently, the first by network protocols and thesecond by higher level protocols. Each of these protocols has a seriesof layers. Examples of layered architectures include the Systems NetworkArchitecture (SNA) developed by IBM, and the subsequently developed OpenSystems Interconnection (OSI) reference model. The latter has sevenlayers, three of which are network services oriented including physical,data link, and network layers, and the other four providing services tothe end user by means of transport, session, presentation, andapplication layers, from lowest to highest layer.

X.25 is an interface organized as a three-layered architecture forconnecting data terminals, computers, and other user systems or devices,generally referred to as data terminal equipment (DTE), to apacket-switched network through data circuit terminating equipment (DCE)utilized to control the DTE's access to the network. The three layers ofthe X.25 interface architecture are the physical level, the frame leveland the packet level. Although data communication between DCEs of thenetwork is routinely handled by the network operator typically usingtechniques other than X.25, communication between the individual usersystem and the respective DCE with which it interfaces to the network isgoverned by the X.25 or similar protocol. In essence, X.25 establishesprocedures for congestion control among users, as well as call setup (orconnect) and call clearing (or disconnect) for individual users,handling of errors, and various other packet transmission serviceswithin the DTE-DCE interface.

X.25 is employed for virtual circuit (VC) connections, including thecall setup, data transfer, and call clearing phases. Call setup betweenDTEs connected to the network is established by one DTE issuing an X.25call-request packet to the related DCE, the packet containing thechannel number for the logical connections, the calling and called DTEaddresses, parameters specifying the call characteristics, and the data.The destination DCE issues an incoming call packet, which is of the samegeneral format as the call-request packet, to the destination DTE, thelatter replying with a call-accepted packet. In response, the callingDCE issues a call-connected packet to its related DTE. At that point thecall is established and the data transfer phase may begin by delivery ofdata packets. When the call is compared, i.e., the session is to end, acall-clearing procedure is initiated.

Prospective routing paths in the network are initially determined by anetwork control center, which then transmits these predetermined pathsto the backbone switches as routing tables consisting of primary andsecondary choices of available links from each hub. The secondarychoices are viable only in the event of primary link failures, and thespecific secondary link selection is a local decision at the respectivehub based principally on current or recent traffic congestion patterns.The unavailability of an outgoing link from a hub at the time of thecall setup effects a clearing back of the VC for the sought call to thepreceding hub. An alternative link is then selected by that hub, or, ifnone is available there, the VC circuit is again cleared back to thenext preceding hub, and so forth, until an available path is uncoveredfrom the routing tables. Messages concerning link and/or hub failuresare communicated immediately to the network control center, and thatinformation is dispatched to the rest of the network by the center.

In typical present-day concentrators and packet switches, the dataprocessing devices reside in a plurality of cards or boards containingprinted circuits or integrated circuits for performing the variousfunctions of the respective device in combination with the systemsoftware. Typically, the cards are inserted into designated slots incages within a console, with backplane access to a data bus forcommunication with one another or to other devices in the network. TheVME bus is presently the most popular 16/32-bit backplane bus.References from time to time herein to cards or boards will beunderstood to mean the various devices embodied in such cards or boards.

Many public data networks (PDNs) offer little or no security forcommunications between users and hosts or other data processing deviceswithin the network, in keeping with the “public purpose” of the networkand the desire for accessibility by a large number of actual andprospective users. Where restrictions on access are necessary ordesirable, it is customary to assign each authorized user anidentification (ID) number or a password, or both, which must be used togain access to the host. More elaborate security measures are necessarywhere access may be had to highly confidential data.

Some data communication networks involve a variety of differentcustomers each of whom makes available a host and one or more databasesto its users, and may place a level of security on its database whichdiffers from the level placed by other customers on their respectivehosts and databases. In those instances, it is customary to make thehost responsible for security and access to itself and its associateddatabase. Thus, a user might have access to certain destinations in thenetwork without restriction, but no access to other destinations.

Market Drivers

According to Yankee Group Research, network management costs continue toincrease, with network managers spending an average of 45 percent oftheir budget on ongoing network management, 20 percent on equipment, and35 percent on network transport services. It is a constant battle toreduce these costs yet somehow improve overall service to theircustomers. Reducing overall network management costs can be verydifficult in today's business environment. Networks continue to becomemore complex, with more and more demands being placed on the networkmanagers and planners. For example, the exponential growth of remoteaccess has made their jobs more difficult, as the requirement toestablish and manage connections for remote offices and telecommuters isoften required without additional personnel or budget resources.Unfortunately, network managers and planners spend so much time in“firefighting” mode, trying to support their complex networks, that verylittle time is actually spent planning for network growth andenhancements. Combined with this is the fact that it is becomingdifficult to keep highly skilled employees given the demand for certainskills in the marketplace, and the premiums that will be paid for thoseskills. So, what is a network manager to do? More and more, they arelooking outside for help.

The market for customer network management services is generallyreferred to as Managed Networked Services (MNS). Yankee Group estimatesthis market will estimated to grow from $3 B to 9 B within the nextthree years. MNS became the focus of service providers in 1995 as theysaw revenues for frame relay network services double for two years in arow. What began as a way to boost the popularity of frame relay servicesby offering to lease and manage routers has blossomed into a diverse setof services that are now closer to those associated with outsourcing.Yankee Group research shows that 37 percent of Fortune 1000 managers arealready outsourcing or plan to outsource their ongoing networkoperations management. In addition, it is the communications providerthat is thought of as the most likely provider for one-stop shoppingservices.

The present invention's overall approach to implementing the NM/MNSmarket offering is twofold. The current opportunity that presents itselfis MNS. While this market opportunity for clients is large, they needassistance in understanding data network management—for years they havebeen solely focused on voice.

Additionally, they need to move into this market quickly in order tomaintain and grow revenue. To this end, the present invention includes aset of assets consisting primarily of job aids and software that cangreatly reduce our clients lead time for service implementation.

Secondly, the present invention assists service providers by providingthem the tools to better manage their carrier data networks—the packetswitched networks of the future. The present invention significantlyenhances and scales MNS assets to address carrier network management ina data networking world. This solution to template enables theconvergence of circuit and packet switching network control centers andworkforces.

The present invention's market offering suggests companies take agraduated approach to delivering MNS. One end of the continuum consistsof MNS for current network services, including leased lines, framerelay, and X.25. On the far end is outsourced MNS characterized bylong-term contracts, involving hundreds of millions of dollars. TheNM/MNS market offering is proposing our clients go beyond the managementof the router and the WAN, and into the world of the local area network(LAN), even as far as the desktop and business applications. Serviceproviders have been intimidated by these propositions in the past, sincemanagement of the LAN and its equipment and applications has clearly notbeen their forte.

It is hard to describe a typical MNS engagement because this is such anew. There are three “entry points” in which the present invention canbecome involved in helping our companies to move into the MNS market:

Business Strategy—Companies may look to the present invention forassistance in creating a business strategy for entering the MNS market.Typically, this type of engagement will defines a company's targetmarket for MNS (small, mid-market, large) and defines the serviceofferings that are best suited for the company to offer. Theseengagements will be followed by analysis, design and implementationprojects.

Requirements Analysis—Companies may already have developed a concretebusiness strategy that defines which services they will offer withinmarkets. In this case, the present invention's work will begin byhelping define the company's network environment requirements. This workwill be followed by design and implementation projects.

Design and Implementation—Companies may be ready to move to the designand implementation phases of creating an MNS capability. Generally, thepresent invention will confirm that their network meets the requirementsto provide the service, then assist the client in the designing andimplementing an appropriate solution suite.

In an effort to clearly communicate exactly how we define NM/MNS we havecreated an online catalog of services. The present invention's solutionis a continuous cycle that begins with the four major processesassociated with NM/MNS. These processes drive the technology and thepeople components of the solution. Within each of these processes are anumber of core functions and sub-functions. The MNS Online Catalogcontains all of this information, including the supporting process,technology and organizational solutions for each function.

Our solution is called the Managed Networked Services IntegratedSolution (MNSIS) and has been developed using an approach whichintegrates Process, Technology, and People considerations.

Process

At the highest level, there are four major processes that must beperformed to manage any network:

-   -   Service Planning    -   Managing Change    -   Operations Management    -   Service Management

Each process should be performed in order to provide a complete NM/MNSsolution. As mentioned above, each process has a number of associatedfunctions and sub-functions that provide the complete picture of theprocess. The major functions associated with each process are asfollows.

Technology

The main goal of the technology solution is to provide access to networkinformation to make informed decisions. The present invention includesthree layers of management: element management, information servicesmanagement and presentation management. Every action starts with anincident. Processing is Jo tailored to handling the incident withtechnology that responds to the unique characteristics of each incident.

Element Manager

The element manager communicates with the network elements to receivealarms and alerts through trapping and polling techniques. The elementmanager is the layer where the primary data reduction functions reside.At this layer, events received at the element manager will be filtered,aggregated and correlated to further isolate problems within thenetwork. Information that is deemed critical to monitor and manage thenetwork is translated into a standard object format and forwarded to theInformation Services Manager. An element manager can be, but is notnecessarily, software which adheres to open standards such as the SimpleNetwork Management Protocol (SNMP) and the Object Management Group's(OMG) Common Object Request Broker Architecture (CORBA).

Information Services Manager

The information services manager provides the data management and datacommunications between element managers and presentation managers. Allinformation forwarded from the element managers is utilized by theinformation services manager to provide information to the networkoperators. The information services manager adheres to CORBA standardsto provide ubiquitous information access via an Object Request Broker(ORB). The ORB allows the information services manager to sharemanagement information stored in distributed databases.

The information services manager stores critical management informationinto operational (real-time) and analytical (historical) distributeddatabases. These databases provide common data storage so that newproducts can be easily inserted into the management environment. Forexample, if an event is received at an element manager that is deemedcritical to display to a network user, the information services managerwill store a copy of the alarm in the operational database and thenforward the alarm to the appropriate network operator.

Media and textual databases are also provided by the informationservices manager. The databases includes online manuals foradministrative purposes, as well as for the maintenance specialists toaccess element specific information. The databases also provideprocedures, policies and computer based training to network users.

The information services manager provides requested information(real-time and historical) to the network users via the presentationmanager.

Presentation Manager

The presentation manager performs the function its name implies: thepresentation of the information to an end user. Because differentlocations and job functions require access to different types ofinformation, there are at least two types of display methods. The firstis for graphic intensive presentations and the second is for nomadicuse, such as field technicians. The first environment requires a graphicintensive display, such as those provided by X-Windows/MOTIF. The secondenvironment is potentially bandwidth poor where dial-up or wirelessaccess may be used along with more traditional LAN access. This is alsowhere browser technology is employed.

People

The people vision for the NM/MNS include an organization model forcustomer service support, the corresponding roles and responsibilitiesfor this organization model and a conceptual design for workforcetransformation to packet switching.

Customer Service Support

-   -   Customer service support provides a single point of contact that        is customer focused. This single point of contact provides        technical expertise in resolving customer incidents, troubles        and requests. Generally a three tiered support structure is        optimal for satisfying customer service needs. Each tier, or        level, possesses an increasing level of skill, with tasks and        responsibilities distributed accordingly. Such a structure is as        follows:        -   Tier 1—typically has a broad set of technical skills and is            the first level of support to the customer. Typically this            group is responsible for resolving 60-70 percent of the            opened problems.        -   Tier 2—are technical experts and field support personnel who            may specialize in specific areas. Typically this group is            responsible for resolving 30-40 percent of the opened            problems.        -   Tier 3—are considered solution experts and often consist of            hardware vendors, software vendors or custom application            development I maintenance teams (in-depth skills needed to            investigate and resolve difficult problems within their area            of expertise). They are the last resort for solving the most            difficult problems. Typically this group is responsible for            resolving 5 percent or fewer of the opened problems.    -   The above model is generally referred to as the Skilled Model        because personnel at all three tiers are highly skilled. This        model generally creates a high percentage of calls resolved on        the first call. Other approaches include:

Functional Model

-   -   In this model, users are requested to contact different areas        (via VRU) depending on the nature of the incident. Calls are        routed to the customer support representative best able to        handle the call. This model can easily be coupled with the        Skilled Model, and has been at previous client engagements.

Bypass Model

-   -   In this model, Tier 1 only logs calls, they do not resolve        calls. One advantage of this model is that skilled resources        don't have to waste time logging calls.

Software and Assets

-   -   Managed Networked Services Integrated Solution—The integrated        network management solution template consists of a suite of best        of breed third party software products that automate problem        diagnosis, notification, custom-developed reporting, and IP        services monitoring. This solution template is a great first        step in realizing our technology solution vision.    -   Web-Based SLA Reporting Tool—is a browser based tool that        provides the personalized SLA reports to customers in both a        template and ad-hoc format.    -   Data Mining Demonstration—Provides the capability to analyze        network management data looking for patterns and correlations        across multiple dimensions. Build models of the behavior of the        data in order to predict future growth or problems and        facilitate managing the network in a proactive, yet        cost-effective manner.    -   Customer to Event Mapping Module—Add-on module to the Managed        Networked Services Integrated Solution which maps network        element events, to service offerings, to customers. This tool        allows the Customer Service Representative to proactively        address network outages with customers.        Process Definitions and Functions        Service Planning

Service Planning includes both the strategic and tactical planningrequired to manage distributed environments effectively. Although mostplanning typically occurs during rollout of the system, certain planningactivities must otherwise take place. Service Planning ensures thatchange can be successfully controlled and implemented.

-   -   Service Management Planning    -   Operations Management Planning    -   Managing Change Planning    -   Strategic Planning        Managing Change

Includes processes and procedures for handling necessary changes tosystems or the organization in a distributed environment.

-   -   Change Control    -   Testing    -   Implementing    -   Software Distribution        Operations Management

Systems Management consists of the day-to-day operational functionsrequired to maintain the system (e.g. fault detection I correction,security management and performance management).

-   -   Production Control    -   Monitoring and Control    -   Fault Management    -   Security Management        Service Management

Service Management controls the overall service to the users of thesystem. It isolates users from how the system is managed, and ensuresthat users receive the quality support services they need to carry outtheir daily business activities.

-   -   SLA/OLA Management    -   Help Desk    -   Quality Management    -   Billing and Accounting

The present invention includes a system, method, and article ofmanufacture for providing a hybrid circuit switched/packet switchednetwork. This hybrid network is used as a transitioning network totransition from old “Core” network architectures to “New Core” networks.In the present description, the details of the NGN transitioning networkwill first be set forth after which details relating to specific billingaspects of the present invention will be described.

PSTN, wireless, and cable networks have continued to grow at theirorganic rates determined by the growth of the vertical services theywere providing. In the beginning, the data networks used a small portionof the backbone SONET bandwidth, while PSTN was still the dominantbandwidth user. Due to the exponential growth in IP traffic, the IPbased data networks are soon slated to utilize more bandwidth than thePSTN. Also huge technical advances in packet technologies have made itpossible to carry traditional voice over IP networks. This has started amove towards the “Next Generation Network (NGN)” where there will bemore sharing of common network infrastructure to provide services, andthese services will start to become more interoperable. The main thrustof technologies in the “NGN” will be to provide interoperability betweenthe new packet based infrastructure and existing legacy infrastructures.Due to the large investments made in the legacy infrastructure, theywill continue to exist for some time, but most new innovations willoccur on the packet based infrastructure. Slowly, the parallel networksthat were created to serve distinct services will merge to use a commonpacket based backbone and only differ in how access is provided(wire-line, wireless, cable, satellite). The “NGN” is a transitionnetwork which will exist during the transformation from the current“Core” to the “New Core”.

As packet technologies continue to develop rapidly, it will be possibleto support what was once a distinct set of services (voice, video,wireless) on separate parallel networks, on one integrated packet basednetwork. There will still be separate access technologies (wireless,satellite, cable, wire-line) to access these services, but the accessnetworks will all use a common “New Core” network and its capabilities.The services will be interoperable across various access technologies,and users will freely use services that cross many access technologies,e.g. wireless to cable phone services, web browsing from wirelessdevices etc.

The present invention maps a course for the network evolution fromcircuit to packet switched technology using a migratory approach inwhich the network becomes a hybrid circuit and packet topology over a 3to 7 year period.

Next, the network architecture for the wire-line network as ittransforms from “Core” to “NGN” to “New Core” will be described.Followed by architecture for cable, wireless and satellite based accessnetworks.

The Wire-Line Network Architecture

“Core;” Network Architecture

The current wire-line “Core” network consists of parallel PSTN, SMDS,ATM, Frame-Relay, B/PRI and IP networks. The PSTN network has beenevolving over the last century and is a mix of old and new circuitswitched technologies. The PSTN network mainly provides point-to-pointinteractive two-way voice communication services. The service set hasevolved to include many intelligent network (IN) service features.During the late 1980s, Advanced Intelligent Networks (AIN) emerged asthe architecture to support new voice based services on the PSTNinfrastructure.

IN requirements and architecture in the current “Core”

The major IN requirements include session establishment, advanced callprocessing, call routing and call treatment (network messages and calltermination). Examples of applications and features are the CLASS familyof services (Call waiting, Call forwarding, Conference calling, Callrejection), enhanced call routing, Number Portability. Calling CardServices, and Audio delivered Information Services (e.g. travel, stocksand weather).

These IN capabilities are enabled by devices such as SCP, STP, SSP andEIP in the AIN environment. These devices participate in the executionand completion of an IN service. In order to develop, test and launchnew IN service applications on the above mentioned components, serviceproviders deploy Service Creation Environment (SCE) platforms, whichprovide an environment to quickly create new IN services. These SCEplatforms are closely tied to the runtime environment and therefore withvery few exceptions become a major undertaking and a complexcoordination effort to launch a new or modified IN service in the “Core”network environment.

Data Networks in the “Core”

While the PSTN was growing in feature functionality as well as trafficdemand, new data networks have been created to support theinter-networking of computing devices. These data networks provideinterconnection to geographically dispersed computing devices at varyinglevels of transmission bandwidth (e.g. 56/64K, T-1/E-1, T-3/E-3,OC-3/STM-1). The data networks consist of many technologies e.g. SMDS,ATM, frame-relay and IP. In some cases, these data networks themselvesare parallel networks, in other cases, they share a common technology inthe backbone (e.g. ATM can be the backbone for frame relay and IP datanetworks). These data networks share the same SONET based backbone withthe PSTN network. The services on the PSTN and the data networks arevery distinct and non-interoperable (example: voice versus web access).

With the rapid explosion of the Internet, and innovation in packet basedtechnologies, the IP based data network has become the dominant networkin terms of user traffic, and its growth is slated to continueexponentially. This phenomenon has created a dilemma for trafficplanners and engineers of the Core network. They have seen traffic growon the access portions of their networks (PSTN) but have realized verylittle financial benefits from this usage because third party serviceproviders have been the termination point of these internet data users.The incumbents have begun to devise intelligent network solutions forthis data traffic (example RAS with SS7 gateway) in order to solve twomajor challenges: 1) off loading data traffic from the voiceinfrastructure to alleviate the congestion issues that face traditionalvoice customers and 2) collecting revenues from the third party dataservices providers (ISP's) for access and routing callers to theirPoints Of Presence.

Due to the high growth in IP and other data services, many new serviceproviders have emerged that are building only IP based data networks,and provide only IP to based data services. Their business strategy isto continue to ride the technological innovation of IP and packet basedtechnologies and build complete suites of services on a packet basedinfrastructure. Because they are investing in only one form of network(as opposed to many parallel networks), their unit cost of services islow, they are not encumbered by legacy networks and systems, and theycan provide cheaper and better services to customers; hence they pose asignificant threat to incumbent telecom service providers.

“Next Generation Network” Architecture

As packet based technologies continue to develop and provide theservices that were only available on other networks (e.g. PSTN, cable),and new (green field) service providers continue to exploit theiradvantage, it has become necessary for many incumbent service providersto transition their “Core” network to the “Next Generation Network”,where they can share the rapid technical advantages of packettechnologies, and improve their cost structure, and at the same timeoffer new services on the “Next Generation Network”.

New IP Based Services in the “NGN”

While there are components in the NGN that ensure interoperabilitybetween “NGN” and PSTN, there are also a huge new set of new servicesthat are built entirely on the NGN components which is provide featurerich multimedia (voice, video, data) based communication services aswell as enabling many E-Commerce services enabled by IP technologies.These components (described later in detail) include directories,policies, user authentication, registration, and encryption. Thesecomponents enable services like integrated messaging, multimediaconversations, on-demand multi-point conference, enhanced security &authentication, various classes of media transport services, numerousautomations in electronic internet commerce activities e.g. banking,shopping, customer care, education, etc. As the NGN matures third partyvalue added service providers will develop IP based services that willcombine applications such as electronic commerce (procurement,warehousing, distribution and fulfillment) as well as online banking topresent the consumer with an integrated boundless shopping experience.

Growth of Bandwidth in the “NGN”

In addition to new service features, the NGN also employs the use of newwire-line broadband access technologies, notably xDSL. Traditionalwire-line access technologies will continue to be deployed at higher andhigher speeds; wire-line access will move from predominantly T-1 speedsto T-3 and OC-n speeds. These new broadband access technologies willincrease the need for higher bandwidth in “NGN” core. The “NGN” corecontinues to use a SONET backbone, but will gradually move to using(D)WDM technologies to provide the bandwidth required to supportbroadband access.

New and emerging technologies such as Giga-Bit Ethernet and Wire SpeedIP may find their way to the network backbone, but not until Giga-bitEthernet technology matures to handle a wide array of network servicessuch as connection oriented circuit emulation. The use of Wire Speed IPtechnology is suitable for an enterprise network but lacks therobustness and scalability needed for carrier grade backbones. For thisreason, there will always be a need for ATM in the backbone.

The architecture in the “NGN” provides seamless interoperability ofservices between the packet based network and the traditional PSTN. New“NGN” packet based capabilities will be developed to support AIN typefeatures, while inter-operating with legacy PSTN/SS7/AIN. Large scaleinnovation in the IP based IN type capabilities (e.g. global numbertransparency, utilization of web based information, rich mediacommunications) will create new services for IP enabled communicationdevices. Innovations on the PSTN will occur slowly, and may berestricted to maintaining interoperability of legacy PSTN with “NGN”. Inmany cases, legacy PSTN components (e.g. SSP, SCP) will continue toevolve so that they can use common IP based packet switchingtechnologies (e.g. IP, TCP, UDP), as opposed to using existing circuitswitched technologies (e.g. MTP).

IN Requirements and Architecture in the Next Generation Network (NGN)

Given the huge revenues and global nature of PSTN services, as well astheir use of SS7 and AIN technologies, components that allowinteroperability between “NGN” and PSTN will need to be developed. Thesewill include IP/PSTN Gateways, IP/PSTN address translators, IP/SS7Gateways, IP enabled SSP's, and IP based Intelligent Peripherals. Inaddition to IN enablers, new components (as will be describe later) withfeatures like directories, policies, user authentication, registration,session encryption, etc. will also be developed to enhance the INcapabilities. The NGN-IN enablers will provide the next level ofintelligence in order to address communication over mixed media types,control of multiple session characteristics, collaborativecommunications needs, ubiquitous network access, “any to any”communications, and multimedia delivered information services. Note thatthese “NGN” components will continue to evolve to provide similar andenhanced capabilities in the “New Core”.

The following provides a description of new components in the “NGN” andthe “New Core” that provide enhanced IP based services. The IntelligentIP (I²P) Network enablers are categorized as follows:

-   -   Session Control (Bandwidth, Switching and Routing)    -   Media Control (Call Treatment such as media conversion)    -   Policy Management (Directory, Access control, Security)    -   Bandwidth Management (Transport and real time restoration)

The components for the “NGN” are described as individual functionalunits but may be combined for practicality on individual network devicesas the requirements dictate. These components have been designed tooperate in a distributed network environment to increase the flexibilityof the NON and New Core. The architecture provides a robust, secure andisolated messaging infrastructure for delivering control planeinformation to these devices.

This infrastructure includes a well-defined message set for accessingthe functions that are provided by these components and data thatresides in the rules database. The control plane architecture isefficient and has a unique mechanism for sharing service, user andcontrol data without duplication. This permits mobile NGN service usersto maintain the same experience and have access to the same informationregardless of where or how they access the network.

Example: Assuming a US based NGN service user was roaming in Europe andwanted to access the network but has the use of specific callinginformation stored in his profile database in the US, how would such achallenge be overcome without replicating the user's data onto everyrules database on the NGN to ensure that the user would not be deniedaccess to features and services which the user typically subscribed.Obviously, storing or replicating this data and then managingsynchronicity over a worldwide network would be process intensive,costly and cumbersome. This intelligent network architecture addressesthese issues efficiently with mechanisms that make remote data availablelocally for the duration of a session and then caches the information inshort term non-volatile memory not in the foreign rules database server.In other words although a user's profile may be physically stored in aRules database in the United States, the user may access the networkfrom Europe and be automatically granted access to the specific servicesand features that normally would be available during his US serviceexperience. The remote session controller in Europe would communicatewith the cross network location register and rules database server toidentify the subscriber's “home” rules database in order to collect thepolicies and profile of the subscriber for use in Europe; this is doneby using the inter device message sets (command and control) over thecontrol plane sub network. Unlike other mechanisms often employed, thismechanism does not replicate this information onto the local (European)rules database, making long term control data management predictable.The design is CORBA compliant and therefore can be interconnected withother standards based networks.

Rules Database Server

Determines Subscriber Profile

-   -   Session requirements such as Bandwidth, Quality Of Service,        Class Of Service    -   Routing preferences based on Priority, Cost, Termination        Location Media and Application requirements (Voice Telephone to        Video Telephone, Multi-point, text to speech, Fax to E-mail        etc.)    -   Content Separation (Example: Tells the intelligent peripheral        and protocol converter to separate the Audio stream from the        data and video stream on an H.32x call; It may also instruct the        protocol converter to process the stream so as to enable this        audio stream to be fed to a destination which supports        traditional analog voice hence the G.728/9 content from the        H.32x session would be converted first to AD/PCM and then sent        to a Class 5 circuit based switch and terminated on a circuit        switched SS7 network POTS line)        Access Device (Session Control)    -   Provides connectivity and session termination from customer        premises to the NGN    -   Acts as the hub for the various applications (Video, Voice, Fax,        Web Data, Unified Messaging)    -   Provides systems management and reporting functions    -   May provide application multiplexing (allowing simultaneous        multi application access)        Intelligent Peripheral (Media Control)    -   Provides services such as DTMF parsing, Voice prompting,        Messaging, Speech recognition, Text to Speech, Text to Fax, etc.        Protocol Conversion (Policy Management)    -   Receives session requirements from Rules database    -   Selects and executes required filters to enable activation,        processing and tear-down of sessions    -   Interfaces with existing CORE network to process information        across NGN I Extended CORE    -   Filters and Converts signals from SS7/ISDN to TCP/IP/H.323    -   Converts Signaling data from one format to another (example:        G.728/9 to AD/PCM or Vocaltec to Vienna Systems, etc.)        Network Access Control Point (Session Control)    -   Similar to a switching node on an SS7 circuit switched network.        First or Last Access Point in the network    -   Provides actual call I session handling, routing and processing        based on instructions from the Rules Database server        Session Manager I Event Logger (Session Control)

This process or application is critical since it is the “glue” betweenthe end user application and the communications network. It isresponsible for collection and distribution of end-user sessionpreferences, application requirements, access device capability andaccounting policy information to the required “IN enabling” components.In summary its main functions are to:

-   -   Create the AMA/CDR and other usage records    -   Interfaces external 3rd party Network Gateways.    -   Liase with Clearing Houses and Cross Network Location Registers    -   Feeds the Financial Infrastructure        Cross Network (Roaming) Location Register (Policy Management)

Similar to the Home location register in the wireless I cellulartelephony world. This functional component provides the requiredpolicies governing users who access third party networks and crossgeographical boundaries. It keeps in constant contact with other crossnetwork location registers of the geographically dispersed butinter-connected networks, exchanging accounting, service feature profileand control data for local and roaming subscribers.

“New Core” Network Architecture

Most of the attributes of the “New Core” will already be in place aspart of “NGN”. These include all intelligent components of the packetbased “NGN” described above. The emergence of “New Core” signals theretirement of legacy PSTN network infrastructure. The traditional PSTNmay never get removed from the public network, it may continue to beavailable as a universally accessible telecommunication service, highlysubsidized and regulated by government agencies (AMTRAK model). But forthe purposes for business and technical innovation, traditional PSTNnetwork will largely become irrelevant.

As the PSTN based access methods go away, entirely IP based accessmethods will emerge in the “New Core”, where all end devices connectedto the “New Core” are IP enabled. All existing methods of wire-linebased access (xDSL, T-1, T-3, fiber) will continue to provide access toIP based services over the “New Core”. New access technologies (e.g.power-line) will emerge, but will still use the same packet basedcapabilities in the “New Core”.

The trends observed in the “NGN” will continue with increased broadbandaccess. Other access methods (cable, satellite, wireless) will alsocomplete their transformation to the “New Core”. These will all becomeIP enabled access technologies that will use the “New Core” for completeset of services, thus really providing seamless services across manydifferent access technologies.

The Wireless Data Network Architecture

The current wireless “Core” network consists of wireless based accessand roaming capabilities that inter-operate with wire-line PSTN “Core”infrastructure to provide interoperable PSTN services. As the PSTNmigrates to “NGN” and “New Core”, the wireless PSTN accessinfrastructure will also migrate to connect to “NGN” and “New Core” toprovide wireless PSTN access services while utilizing new capabilitiesin the “NGN” and the “New Core”. There will also be innovations in thewireless end-devices such that they will become IP enabled, and willthus allow a broad range of innovations by allowing mobility to thewire-line IP based service capabilities (e.g. web browsing, e-mailetc.). These wireless access methods to the “New Core” will berestricted to lower speeds due to the legacy nature of this wirelessinfrastructure while new broadband wireless access may emerge to providea new set of IP enabled wireless devices that can provide broadbandservices over wireless/mobile devices. In Europe, significantimprovements in technologies such as GSM have provided insight into someNGN and New CORE capabilities such as 300 Kilobits of access bandwidthto deliver information to hand-held wireless devices. The potential ofsuch capabilities coupled with the traditional strengths of wirelesscommunications such as roaming and error handling enabled bydigitization, at this stage seems limitless when aggregated with theintelligence of the NGN and New CORE backbone.

LMDS is an emerging technology in the local high speed wire-less access,which utilizes the 25-35 GHz microwave spectrum for point to point andpoint to multi-point communications. The end users either share anantenna connected to a digital receiver which is connected to a channelbank. The application server be it voice (PBX), video (CODEC), or Data(Router or Switch) interfaces with the NGN via the channel bank. Asession originates from the application which interacts with the serverto request authentication (AAA), then a session is established betweenoriginator and destination application by routing the call through theNGN components such as Gateways and Switches.

The Emerging Satellite Data Network Architecture

In addition to the wireless access infrastructure, new service providershave emerged that are trying to use low earth orbiting satellites (LEOS)to build a new access as well as backbone network infrastructure. Theearlier version of these networks were built using traditional PSTNservice model, hence they lack the bandwidth scalability for dataservices. In the “New Core”, these will migrate to new packet switchedbased broadband LEO infrastructure, which will provide both high speedaccess as well as high speed backbone in the packet based “NGN” and “NewCore”. A satellite based broadband access mechanism will also be verysuitable for multi-point services that will be developed on the “NewCore”.

The Cable Network Architecture

Cable networks were developed for mainly broadband broadcast of analogvideo entertainment services. The current “Core” cable infrastructure issuitable to serve one way video broadcast. Cable service providers arenow upgrading their cable infrastructure to support high speed internetaccess. Thus in the “NGN” scenario for cable networks, cable willprovide a new access mechanism for IP services, while simultaneouslytransport video content using the current video broadcast technology.Thus the IP enabled devices attached to the “NGN” cable infrastructurecan take advantage of all the new components and capabilities describedin the wire-line “NGN”. This will enable seam-less services betweendevices that are accessing the “NGN” via a wire-line or cableinfrastructures. This “NGN” cable infrastructure can provide IP basedtelephony services using the same components of the wire-line “NGN” thatprovide IP telephony to wire-line IP devices.

The digital network segment that interfaces with the “NGN” comprises ofa coaxial cable local loop which is connected to a cable data modulatorrunning QAM/DPSK protocols. The coaxial loop is terminated at thecustomer premise by an Ethernet cable modem which delivers the IP Toneto the applications (Voice, Video, Data) that may reside on a PC orapplication server. The cable modems used provide users and applicationswith a wide range of bandwidth options from 2 to 10 Mbits per seconddepending on configuration and choice of equipment vendor.

With the evolution of the “New Core” in the wire-line, the cable willcontinue to provide another broadband access mechanism for IP basedservices. As the “New Core” matures and enhances in capabilities(probably 10 years away), such that it can provide high speed real-timevideo content (to provide same quality as cable), it can be envisagedthat the cable will becomes an entirely IP access mechanism (just likeall wire-line access becomes an IP access mechanism). Then the broadcastvideo content will be delivered to IP enabled cable attached devicesjust like any other rich media will be delivered over the IP network. Itis even conceivable that video encoding technologies such as MPEG2 andmotion JPEG will be further improved to deliver higher resolutiondigital media over the cable infrastructure using NGN and CORE deliverymechanisms. The network becomes transparent and the applications andcontent drive the creativity of the service creation process. The PSTNlike services will be delivered to devices connected via cable accessjust like they are delivered to other wire-line connected devices on the“New Core”.

NGN Creation Strategy

-   The network transformation plan comprises of the following phases-   Strategy-   Market Trial-   Service Launch-   Consolidation and Optimization    Strategy    -   Determine where our current network fits in the evolutionary        continuum from CORE to NGN or New CORE. Having identified the        appropriate positioning of the network, select an architectural        scenario that best serves business and technical objectives of        the engagement.        Market Trial    -   Develop and launch a market trial that would measure and assess        the viability of the introduction of the proposed service.        Additionally, this trial validates the approach to transform        specific parts of the infrastructure towards the “NGN” and “New        Core”. The market trial provides the entry-exit criteria,        metrics, Key Performance Indicators etc. to assess the success        of the market trial.        Service Launch    -   Develop, plan and manage the detailed network, systems, process        and program management aspects of the launch of a “New Core”        that is applicable for the network based on the strategy        developed above. This ensures that the network systems planned        and developed will be future-ready. The OSS and back-office        systems are be able to support the processes required for        service creation and management in the “New Core”. The network        creation processes provides the program management tools to        ensure that the launch is successfully executed. These include        entry and exit criteria for network creation, KPIs for quality        management, program planning and management tool-kits.        Service Consolidation and Optimization    -   As the network operator moves into operating and maintaining the        “NGN”, there will be many parallel market driven journeys during        which services and capabilities will be developed for the “NGN”.        The network creation process provides tools to assist the client        into improving efficiencies of these parallel journeys. These        optimization efforts will include organizational, process and        technology driven changes to create efficiency based on        consolidation of processes, as well as measurement tools to        determine the success of such consolidation. The network        architecture roadmap and business blueprint will act as the        foundation to ensure that during the consolidation phase the        “NGN” maintains the required architecture framework to sustain        it for the long term.

Now that the details regarding the NGN have been set forth, informationwill now be presented concerning billing when the quality of service isdegraded.

Degraded Quality of Service and Billing

A typical telecommunication network comprises multiple telecommunicationswitches located throughout a geographical area. When a user makes acall, the call may be routed through one or more switches beforereaching its destination.

FIG. 12 illustrates an exemplary telecommunications system 1200 acrossthe United States. For purposes of illustration, a caller 1202 places acall from Los Angeles, Calif. to a party 112 located in New York City,N.Y. Such a call is typically transmitted across three (3) switches: theLos Angeles, Calif. switch 1206; the Chicago, Ill. switch 1208; and theNew York City, N.Y. switch 1210. In this scenario, the originatingswitch is the Los Angeles, Calif. switch 1206, and the terminatingswitch is the New York City, N.Y. switch 1210.

Each of the switches, 1206-1210, is connected to two (2) or more DataAccess Points (DAP) 1212-1216, for instance a primary DAP 1212-1216 anda backup DAP 1212-1216. A DAP 1212-1216 is a facility that receivesrequests for information from the switches 12166-1210, processes therequests, and returns the requested information back to the requestingswitch 1206-1210. The switches 1206-1210 use information from the DAPs1212-1216 to process calls through the network.

When a call passes through one of the switches, 1206-1210, that switchcreates a call record. The call record contains information on the call,including but not limited to: routing, billing, call features, andtrouble shooting information. After the call is terminated, each switch1206-1210 that processed the call completes the associated call record.The switches 1206-1210 combine multiple call records into a billingblock.

When a switch 1206-1210 fills the billing block, the switch 1206-1210sends the billing block to a billing center 1218. Thus, the billingcenter 1218 receives one billing block from each switch 1206-1210 thathandled the call, which in this case would be three billing blocks. Thebilling center 1218 searches each billing block and retrieves the callrecord associated with the call, thereby retrieving one call record perswitch 1206-1210 that handled the call. The billing center 1218 thenuses one or more of the retrieved call records to generate a billingentry. The billing center 1218 is also connected to each DAP 1212-1216to retrieve information regarding a switch 1206-1210 or call record.However, billing in the present invention is increased because thehybrid network also contains proxy intelligence.

FIG. 13 shows a block diagram of the Network Data Management 1300 inaccordance with a preferred embodiment of the present invention. NetworkData Management 1300 encompasses the collection of usage data and eventsfor the purpose of network performance and traffic analysis. This datamay also be an input to Billing (Rating and Discounting) processes atthe Service Management Layer, depending on the service and itsarchitecture.

The process provides sufficient and relevant information to verifycompliance/non-compliance to Service Level Agreements (SLA). The processprovides sufficient usage information for rating and billing.

This process ensures that the Network Performance goals are tracked, andthat notification is provided when they are not met (threshold exceeded,performance degradation). This also includes thresholds and specificrequirements for billing. This includes information on capacity,utilization, traffic and usage collection. In some cases, changes intraffic conditions may trigger changes to the network for the purpose oftraffic control. Reduced levels of network capacity can result inrequests to Network Planning for more resources.

FIG. 14 is a flowchart illustrating a network data management process inaccordance with a preferred embodiment. First, in step 1400, data iscollected relating to usage and events occurring over a hybrid network.Next, in step 1402, the data is analyzed to determine a status of thehybrid network which in turn, in step 1404, is utilized duringmanagement of the hybrid network. Further, in step 1406, billing ratesand discounts are determined based on the status of the hybrid network.

In addition to the Network Data Management 1300 generating billingevents, the present invention also uses a Customer Interface Managementprocess 132, as shown in FIG. 15, to directly interact with customersand translate customer requests and inquiries into appropriate “events”such as, the creation of an order or trouble ticket or the adjustment ofa bill. This process logs customer contacts, directs inquiries to theappropriate party, and tracks the status to completion. In those caseswhere customers are given direct access to service management systems,this process assures consistency of image across systems, and securityto prevent a customer from harming their network or those of othercustomers. The aim is to provide meaningful and timely customer contactexperiences as frequently as the customer requires.

FIG. 16 is a flowchart illustrating a Customer Interface ManagementProcess in accordance with a preferred embodiment. First, in step 1600,a service level agreement is received for a hybrid network customer.Next, in step 1602, the service level agreement is stored after which,in step 1604, inquiries are received from network customers reflectingoccurrences related to the hybrid network. Thereafter, in step 1606,events are generated based on the customer inquiries and the servicelevel agreement.

The Network Data Management 1300 and Customer Interface Managementprocess are used to give information to the Customer Quality of ServiceManagement Process 1302, as shown in FIG. 17. The Customer Quality ofService Management Process 1302 encompasses monitoring, managing andreporting of quality of service as defined in Service Descriptions,Service Level Agreements (SLA), and other service-related documents. Itincludes network performance, but also performance across all of serviceparameters, e.g., Orders Completed On Time. Outputs of this process arestandard (predefined) and exception reports, including; dashboards,performance of a service against an SLA, reports of any developingcapacity problems, reports of customer usage patterns, etc. In addition,this process responds to performance inquiries from the customer. ForSLA violations, the process supports notifying Problem Handling and forQoS violations, notifying Service Quality Management 1304. The aim is toprovide effective monitoring. Monitoring and reporting must provide SPmanagement and customers meaningful and timely performance informationacross the parameters of the services provided. The aim is also tomanage service levels that meet specific SLA commitments and standardservice commitments.

FIG. 18 is a flowchart illustrating a Customer Quality of ServiceManagement Process in accordance with a preferred embodiment. First, instep 1800, a hybrid network event is received which may include customerinquiries, required reports, completion notification, quality of serviceterms, service level agreement terms, service problem data, qualitydata, network performance data, and/or network configuration data. Next,in step 1802, the system determines customer reports to be generatedand, in step 1804, generates the customer reports accordingly based onthe event received.

FIG. 19 shows a block diagram of the Service Quality Management 1304 inaccordance with a preferred embodiment of the present invention. TheService Quality Management Process 1304 supports monitoring service orproduct quality on a service class basis in order to determine:

-   Whether service levels are being met consistently-   Whether there are any general problems with the service or product-   Whether the sale and use of the service is tracking to forecasts.

This process also encompasses taking appropriate action to keep servicelevels within agreed targets for each service class and to either keepahead of demand or alert the sales process to slow sales. The aim is toprovide effective service specific monitoring, management and customersmeaningful and timely performance information across the parameters ofthe specific service. The aim is also to manage service levels to meetSLA commitments and standard commitments for the specific service.

FIG. 20 is a flowchart illustrating a Service Quality Management Processin accordance with a preferred embodiment. First, in step 2000, a hybridnetwork event is received that may include forecasts, qualityobjectives, available capacity, service problem data, quality of serviceviolations, performance trends, usage trends, problem trends,maintenance activity, maintenance progress, and/or credit violations.Next, in step 2002, quality management network data is determined and,in step 2004, the quality management network data is generated. Suchquality management network data may include constraint data, capacitydata, service class quality data, service modification recommendations,additional capacity requirements, performance requests, and/or usagerequests. Finally, in step 2006, a network process to which to send thegenerated data is identified.

FIG. 21 shows a block diagram of the Problem Handling Process 1502. TheProblem Handling Process receives information from the CustomerInterface Management Process 1500 and the Customer Quality of serviceManagement Process 1302. It is responsible for receiving servicecomplaints from customers, resolve them to the customer's satisfactionand provide meaningful status on repair or restoration activity. Thisprocess is also responsible for any service-affecting problems,including:

-   notifying the customer in the event of a disruption (whether    reported by the customer or not),-   resolving the problem to the customer's satisfaction, and-   providing meaningful status on repair or restoration activity.

This proactive management also includes planned maintenance outages. Theaim is to have the largest percentage of problems proactively identifiedand communicated to the customer, to provide meaningful status and toresolve in the shortest timeframe.

FIG. 22 is a flowchart illustrating a Problem Handling ManagementProcess in accordance with a preferred embodiment. First, in step 2200,a notification of a problem within a hybrid network is received by thesystem. Next, in step 2202, a resolution for the problem within thehybrid network is determined. The resolution may include a statusreport, resolution notification, problem reports, servicereconfiguration, trouble notification, service level agreementviolations, and/or outage notification. Finally, in step 2204, theprogress of the implementation of the resolution is tracked.

The Problem Handling Process 1502 and the Network Data Management 1300feed information to the Rating and Discounting Process 1306, as shown inFIG. 23. This process applies the correct rating rules to usage data ona customer-by-customer basis, as required. It also applies any discountsagreed to as part of the Ordering Process, for promotional discounts andcharges, and for outages. In addition, the Rating and DiscountingProcess 1306 applies any rebates due because service level agreementswere not met. The aim is to correctly rate usage and to correctly applydiscounts, promotions and credits.

FIG. 24 is a flowchart illustrating Rating and Discounting Process inaccordance with a preferred embodiment. First, in step 2400, hybridnetwork customer usage information is received. In step 2402, networkservice level agreement violations are collected, and in step 2404,network quality of service violations are received by the Rating andDiscounting system. Next, in step 2406, rating rules are applied to thenetwork customer usage information. Further, in step 2408, negotiateddiscounts are determined based on the network quality of serviceviolations and, in step 2410, rebates are determined based on thenetwork service level agreement violations. Thereafter, in step 2412,billing data reflecting the usage information, the negotiated discounts,and the rebates is provided to generate a customer invoice.

Utilizing information from the Rating and Discounting Process 1306, theInvoice and Collections Process 1504, as shown in FIG. 25, createscorrect billing information. This process encompasses sending invoicesto customers, processing their payments and performing paymentcollections. In addition, this process handles customer inquiries aboutbills, and is responsible to resolve billing problems to the customer'ssatisfaction. The aim is to provide a correct bill and, if there is abilling problem, resolve it quickly with appropriate status to thecustomer. An additional aim is to collect money due the service providerin a professional and customer supportive manner.

FIG. 26 is a flowchart illustrating an Invoice and Collections Processin accordance with a preferred embodiment. First, in step 2600, customeraccount inquiries and customer payment information is received by thesystem. Next, in step 2602, billing data, including discounts due toquality of service violations and rebates due to service level agreementviolations, is collected and processed. Thereafter, in step 2604,customer account invoices are created for distribution based on thecustomer payment information and the billing data.

Mediation and activity tracking are provided by the event logger andevent manager. The event logger and event manager feed the rating andbilling information for degraded service using the personally customizedrules database. Utilizing an expert system for the tailored capabilitiesof each customer, the event driver, collector and manager analyzenotification events generated by the system. When a notification eventis received the system analyzes the event and uses it to identify thecustomer. The notification event is also used to credit the customer ifthey experience a non-impacting event that breaches the customer'scontract. In addition to the system itself generating the notificationevent, the customer is also able to notify the provider directly shouldsuch an event occur.

FIG. 27 is a flowchart illustrating media communication over the hybridnetwork of the present invention. When a customer initiates a use of thehybrid network, the hybrid network, in a first step 2700, transfers themedia over the network using IP information to route it to theappropriate destination. The media transferred over the network may betelephony data, image data, or any other data capable of packet switchedtransmission.

In a second step 2702, events are generated based on the quality ofservice of the media transfer. As discussed above with reference to FIG.17 and FIG. 19, these events include performance notifications due toSLA violations, and customer generated events from the CustomerInterface Management Process 1500.

In a third step 2704, the events generated in step 2702 are utilized togenerate a bill for the customer. In addition to normal billing forservice provided via the hybrid network, the bill is modified based onevents generated during the media transfer. For example, eventsrepresenting SLA violations are used to credit customers. As discussedabove with reference to FIGS. 21, 23, and 25, the Problem HandlingProcess 1502 is responsible for receiving service complaints and otherservice-affecting problems. Together with the Network Data Management1300, the Problem Handling Process feeds data to the Discounting Process1306. The Discounting Process 1306 applies the correct rating rules on acustomer-by-customer basis, and applies discounts for events, such asoutages and other SLA violations. Finally, the Invoice and CollectionsProcess 1504, utilizes the information from the Discounting Process 1306to create customer billing information.

To better understand the invention, it is useful to describe someadditional terminology relating to a telecommunication network. Atelephone call comes into a switch on a transmission line referred to asthe originating port, or trunk. The originating port is one of manytransmission lines coming into the switch from the same location oforigin. This group of ports is the originating trunk group. Afterprocessing an incoming call, the switch transmits the call to adestination location, which may be another switch, a local exchangecarrier, or a private branch exchange. The call is transmitted over atransmission line referred to as the terminating port, or trunk. Similarto the originating port, the terminating port is one of a group of portsgoing from the switch to the same destination. This group of ports isthe terminating trunk group.

Contemporary telecommunication networks provide customers with thecapability of using the general public network as well as the capabilityof defining a custom virtual network (VNet). With a VNet, a customerdefines a private dialing plan, including plan telephone numbers. A VNetcustomer is not limited to the default telephone numbers allocated to apublic telecommunication system dedicated to a specific geographicregion, but can define custom telephone numbers.

Upon processing a telephone call, a switch must generate a call recordlarge enough to contain all of the needed information on a call. Thecall record, however, must not be so large that the typical call resultsin the majority of the record fields in the call record to be unused. Insuch a case, storing such call records results in large amounts ofwasted storage, and transmitting such a call record causes unnecessarytransmissions.

One solution for creating and processing call records is to implement afixed length call record format, such as a 32-word call record. A wordis two (2) bytes, or sixteen (16) bits. A fixed length record format,however, cannot expand when new call features are implemented. Moreimportantly, fixed call record formats cannot handle expanded datafields as the telecommunications network becomes more complex with newfeatures and telephone numbers.

Contemporary fixed length record formats include time point fieldsrecording local time in three (3) second increments where local switchtime represents the time of day at a switch. The timepoint fields areused by the network switches, billing center, and other networksubsystems. Each subsystem, however, may require the time period for adifferent use and in a different format, such as in an epoch timeformat. Epoch time is the number of one (1) second increments since aparticular date and time in history. For example, the billing centerrequires epoch time for its billing records whereas switch reports anderror logs require local switch time.

A problem also arises when using only local switch time in that there isno accommodation for time changes due to daylight savings time. Inaddition, each subsystem may require a finer granularity of precisionthan the current three (3) second increments. By providing only localswitch time at three (3) second increments, the switches have passed theburden of translating the time into a usable format to the networksubsystems. The fixed record format cannot accommodate the various timeperiod requirements because it only contains the time periods in localswitch time at a low level of precision. Because of its fixed nature,the fixed record format cannot expand to include different time formats,nor to include a finer granularity of precision, such as a one (1)second increment.

Therefore, there is a need for switches of a telecommunications networkto store call record information in a flexible and expandable format.There is a further need to provide time point fields with one (1) secondgranularity in a flexible format that easily and efficiently responds todaylight savings time and time zone changes.

There is also a need to match all of the call records associated with aspecific telephone call. For example, for proper billing and costcontrol, it is necessary for the billing center to match the originatingswitch's call record to the terminating switch's call record. Also, fortroubleshooting and security purposes, it may be necessary to trace aspecific telephone call through the network with ease in order toisolate problem areas.

Therefore, there is a need for switches of a telecommunications networkto uniquely identify each telephone call that traverses the network,thereby uniquely identifying all of the call records associated with aspecific telephone call.

An Embodiment

Call Record Format

An embodiment solves the problem of providing a flexible and expandablecall record format by implementing both a small and a large call recordformat. In particular, the embodiment implements a default 32-word callrecord format, plus an expanded 64-word call record format. Anembodiment uses a 32-word call record format for the typical telephonecall, which comprises the majority of all telephone calls, and uses a64-word call record format when additional information is neededregarding the call. This implementation provides the flexibility neededto efficiently manage varying data requirements of a given call record.New call features can be developed and easily incorporated into thevariable call record format of the present invention.

This embodiment also records timepoints in the epoch time format. Theembodiment records the origination time of a call in epoch time format,and the remaining timepoints are offsets, or the number of seconds, fromthat origination time. This embodiment solves the problems associatedwith converting to and from daylight savings time because daylightsavings time is a local time offset and does not affect the epoch time.Furthermore, the timepoints in epoch time format require less space inthe call record than they do in local switch time format.

The epoch time format may represent coordinated universal time (UTC), asdetermined at Greenwich, England, which has a time zone of zero (0)local switch time, or any other time. Epoch time is only a format anddoes not dictate that UTC must be used. The billing time and the localswitch time may be in UTC or local time, and the local switch time maynot necessarily be the same time that is used for billing. Therefore,the switch must keep billing time and local switch time separate inorder to prevent the problems that occur during daylight savings timechanges.

Network Call Identifier

This embodiment solves the problem of uniquely identifying eachtelephone call and all of the call records associated with a specifictelephone call by providing a unique identifier to each call record. Itgenerates a network call identifier (NCID) that is assigned to each callrecord at the point of call origination, that is, the originating switchgenerates an NCID for each telephone call. The NCID accompanies theassociated telephone call through the telecommunications network to thetermination point at the terminating switch. Therefore, at any point ofa telephone call in the network, the associated NCID identifies thepoint and time of origin of the telephone call. Each switch throughwhich the telephone call passes records the NCID in the call recordassociated with the call. The NCID is small enough to fit in a 32-wordcall record, thereby reducing the data throughput and storage. The NCIDprovides the billing center and other network subsystems with theability to match originating and terminating call records for a specifictelephone call.

This embodiment also provides the switch capability of discarding areceived NCID and generating a new NCID. A switch discards a receivedNCID if the NCID format is invalid or unreliable, thereby ensuring avalid unique identifier to be associated with each call going throughthe network. For instance, an NCID may be unreliable if generated bythird party switches in the telecommunications network.

This embodiment relates to switches of a telecommunication network thatgenerate call records using a flexible and expandable record format. Thecall record formats include a small (preferably 32-word) and a large(preferably 64-word) expanded format. It would be readily apparent toone skilled in the relevant art to implement a small and large recordformat of different sizes.

The embodiment also relates to switches of a telecommunication networkthat generate a unique NCID for each telephone call traversing thenetwork. The NCID provides a mechanism for matching all of the callrecords associated with a specific telephone call. It would be readilyapparent to one skilled in the relevant art to implement a call recordidentifier of a different format.

The chosen embodiment is computer software executing within a computersystem. FIG. 28 shows an exemplary computer system. The computer system2800 includes one or more processors, such as a processor 2801. Theprocessor 2801 is connected to a communication bus 2802.

The computer system 2800 also includes a main memory 2804, preferablyrandom access memory (RAM), and a secondary memory 2806. The secondarymemory 2806 includes, for example, a hard disk drive 2808 and/or aremovable storage drive 2810, representing a floppy disk drive, amagnetic tape drive, a compact disk drive, etc. The removable storagedrive 2810 reads from and/or writes to a removable storage unit 2812 ina well known manner.

Removable storage unit 2812, also called a program storage device or acomputer program product, represents a floppy disk, magnetic tape,compact disk, etc. The removable storage unit 2812 includes a computerusable storage medium having therein stored computer software and/ordata.

Computer programs (also called computer control logic) are stored inmain memory 2804 and/or the secondary memory 2806. Such computerprograms, when executed, enable the computer system 2800 to perform thefunctions of the present invention as discussed herein. In particular,the computer programs, when executed, enable the processor 2801 toperform the functions of the present invention. Accordingly, suchcomputer programs represent controllers of the computer system 2800.

Another embodiment is directed to a computer program product comprisinga computer readable medium having control logic (computer software)stored therein. The control logic, when executed by the processor 2801,causes the processor 2801 to perform the functions as described herein.

Another embodiment is implemented primarily in hardware using, forexample, a hardware state machine. Implementation of the hardware statemachine so as to perform the functions described herein will be apparentto persons skilled in the relevant arts.

Call Record Format

This embodiment provides the switches of a telecommunication networkwith nine (9) different record formats. These records include: CallDetail Record (CDR), Expanded Call Detail Record (ECDR), Private NetworkRecord (PNR). Expanded Private Network Record (EPNR), Operator ServiceRecord (OSR), Expanded Operator Service Record (EOSR), Private OperatorService Record (POSR), Expanded Private Operator Service Record (EPOSR),and Switch Event Record (SER). Each record is 32 words in length, andthe expanded version of each record is 64 words in length.

Example embodiments of the nine (9) call record formats discussed hereinare further described in FIGS. 29-35. The embodiments of the callrecords of the present invention comprise both 32-word and 64-word callrecord formats. It would be apparent to one skilled in the relevant artto develop alternative embodiments for call records comprising adifferent number of words and different field definitions. FIG. 29 showsa graphical representation of the CDR and PNR call record formats. FIGS.30 and 31 show a graphical representation of the ECDR and EPNR callrecord formats. FIG. 32 shows a graphical representation of the OSR andPOSR call record format. FIGS. 33 and 34 show a graphical representationof the EOSR and EPOSR call record formats. FIG. 35 shows a graphicalrepresentation of the SER record format.

The CDR and PNR, and thereby the ECDR and EPNR, are standard call recordformats and contain information regarding a typical telephone call as itpasses through a switch. The CDR is used for a non-VNET customer,whereas the PNR is used for a VNET customer and is generated at switchesthat originate VNET calls. The fields of these two records are identicalexcept for some field-specific information described below.

The OSR and POSR, and thereby the EOSR and EPOSR, contain informationregarding a telephone call requiring operator assistance and aregenerated at switches or systems actually equipped with operatorpositions. A switch completes an OSR for a non-VNET customer andcompletes a POSR for a private VNET customer. These records are onlygenerated at switches or systems that have the capability of performingoperator services or network audio response system (NARS) functions. Theformats of the two (2) records are identical except for somefield-specific information described below.

A SER is reserved for special events such as the passage of each hourmark, time changes, system recoveries, and at the end of a billingblock. The SER record format is also described in more detail below.

FIGS. 36 and 37 collectively illustrate the logic that a switch uses todetermine when to use an expanded version of a record format. A call3602 comes into a switch 1206-1210 (called the current switch forreference purposes; the current switch is the switch that is currentlyprocessing the call), at which time that switch 1206-1210 determineswhat call record and what call record format (small/default orlarge/expanded) to use for the call's 3602 call record. In this regard,the switch 1206-1210 makes nine (9) checks for each call 3602 that itreceives. The switch 1206-1210 uses an expanded record for a call 3602that passes any check as well as for a call 3602 that passes anycombination of checks.

The first check 3604 determines if the call is involved in a directtermination overflow (DTO) at the current switch 1206-1210. For example,a DTO occurs when a customer makes a telephone call 3602 to an 800number and the original destination of the 800 number is busy. If theoriginal destination is busy, the switch overflows the telephone call3602 to a new destination. In this case, the switch must record theoriginally attempted destination, the final destination of the telephonecall 3602, and the number of times of overflow. Therefore, if the call3602 is involved in a DTO, the switch 1206-1210 must complete anexpanded record (ECDR, EPNR, EOSR, EPOSR) 3616.

The second check 3606 made on a call 3602 by a switch 1206-1210determines if the calling location of the call 3602 is greater than ten(10) digits. The calling location is the telephone number of thelocation from where the call 3602 originated. Such an example is aninternational call which comprises at least eleven (11) digits. If thecalling location is greater than ten (10) digits, the switch records thetelephone number of the calling location in an expanded record (ECDR,EPNR, EOSR, EPOSR) 3616.

A switch 1206-1210 makes a third check 3608 on a call 3602 to determineif the destination address is greater than seventeen (17) digits. Thedestination address is the number of the called location and may be atelephone number or trunk group. If the destination is greater thanseventeen (17) digits, the switch records the destination in an expandedrecord (ECDR, EPNR, EOSR, EPOSR) 3616.

A switch 1206-1210 makes a fourth check 3610 on a call 3602 to determineif the pre-translated digits field is used with an operated assistedservice call. The pre-translated digits are the numbers of the call 3602as dialed by a caller if the call 202 must be translated to anothernumber within the network. Therefore, when a caller uses an operatorservice, the switch 1206-1210 records the dialed numbers in expandedrecord (EOSR, EPOSR) 3616.

In a fifth check 3612 on a call 3602, a switch 1206-1210 determines ifthe pre-translated digits of a call 3602 as dialed by a caller withoutoperator assistance has more than ten (10) digits. If there are morethan ten (10) pre-translated digits, the switch 1206-1210 records thedialed numbers in expanded record (ECDR, EPNR) 3616.

In a sixth check 3614 on a call 3602, a switch 1206-1210 determines ifmore than twenty-two (22) digits, including supplemental data, arerecorded in the Authorization Code field of the call record. TheAuthorization Code field indicates a party who gets billed for the call,such as the calling location or a credit card call. If the data entryrequires more than twenty-two (22) digits, the switch 1206-1210 recordsthe billing information in an expanded record (ECDR, EPNR, EOSR, EPOSR)3616.

In a seventh check 3700 on a call 3602, a switch 1206-1210 determines ifthe call 3602 is a wideband call. A wideband call is one that requiresmultiple transmission lines, or channels. For example, a typical videocall requires six (6) transmission channels: one (1) for voice and five(5) for the video transmission. The more transmission channels usedduring a wideband call results in a better quality of reception.Contemporary telecommunication systems currently provide up totwenty-four (24) channels. Therefore, to indicate which, and how many,of the twenty-four channels is used during a wideband call, the switchrecords the channel information in an expanded record (ECDR, EPNR) 3708.

In an eighth check 3702 on a call 3602, a switch 1206-1210 determines ifthe time and charges feature was used by an operator. The time andcharges feature is typically used in a hotel scenario when a hotel guestmakes a telephone call using the operator's assistance and charges thecall 3602 to her room. After the call 3602 has completed, the operatorinforms the hotel guest of the charge, or cost, of the call 3602. If thetime and charges feature was used with a call 3602, the switch 1206-1210records the hotel guest's name and room number in an expanded record(EOSR, EPOSR) 3712.

The ninth, and final, check 3704 made on a call 3602 by a switch1206-1210 determines if the call 3602 is an enhanced voiceservice/network audio response system (EVS/NARS) call. An EVS/NARS is anaudio menu system in which a customer makes selections in response to anautomated menu via her telephone key pad. Such a system includes a NARSswitch on which the audio menu system resides. Therefore, during anEVS/NARS call 3602, the NARS switch 1206-1210 records the customer'smenu selections in an expanded record (EOSR, EPOSR) 3712.

If none of the checks 3604-3704 return a positive result, then theswitch 1206-1210 uses the default record format (OSR, POSR) 3710.

Once the checks have been made on a call, a switch generates andcompletes the appropriate call record. Call record data is recorded inbinary and Telephone Binary Coded Decimal (TBCD) format. TBCD format isillustrated below:

-   0000=TBCD-Null-   0001=digit 1-   0010=digit 2-   0011=digit 3-   0100=digit 4-   0101=digit 5-   0110=digit 6-   0111=digit 7-   1000=digit 8-   1001=digit 9-   1010=digit 0-   1011=special digit 1 (DTMF digit A)-   1100=special digit 2 (DTMF digit B)-   1101=special digit 3 (DTMF digit C)-   1110=special digit 4 (DTMF digit D)-   1111=special digit 5 (Not Used)

All TBCD digit fields must be filled with TBCD-Null, or zero, prior todata being recorded. Where applicable, dialed digit formats conform tothese conventions:

-   N=digits 2-9-   X=digits 0-9-   Y=digits 2-8

Thus, if the specification for a call record field contains a N, thevalid field values are the digits 2-9.

Each call record, except SER, contains call specific timepoint fields.The timepoint to fields are recorded in epoch time format. Epoch time isthe number of one second increments from a particular date/time inhistory. The embodiment of the present invention uses a date/time ofmidnight (00:00 am UTC) on Jan. 1, 1976, but this serves as an exampleand is not a limitation. It would be readily apparent to one skilled inthe relevant art to implement an epoch time based on another date/time.In the records, Timepoint 1 represents the epoch time that is theorigination time of the call 3602. The other timepoint stored in therecords are the number of seconds after Timepoint 1, that is, they areoffsets from Timepoint 1 that a particular timepoint occurred. All ofthe timepoint fields must be filled in with “O's” prior to any databeing recorded. Therefore, if a timepoint occurs, its count is one (1)or greater. Additionally, timepoint counters, not including Timepoint 1,do not rollover their counts, but stay at the maximum count if the timeexceeds the limits.

The switch clock reflects local switch time and is used for all timesexcept billing. Billing information is recorded in epoch time, which inthis embodiment is UTC. The Time offset is a number reflecting theswitch time relative to the UTC, that is, the offset due to time zonesand, if appropriate, daylight savings time changes. There are threefactors to consider when evaluating time change relative to UTC. First,there are time zones on both sides of UTC, and therefore there may beboth negative and positive offsets. Second, the time zone offsets countdown from zero (in Greenwich, England) in an Eastward direction untilthe International Dateline is reached. At the Dateline, the date changesto the next day, such that the offset becomes positive and startscounting down until the zero offset is reached again at Greenwich.Third, there are many areas of the world that have time zones that arenot in exact one-hour increments. For example. Australia has one timezone that has a thirty (30) minute difference from the two time zones oneither side of it, and Northern India has a time zone that is fifteen(15) minutes after the one next to it. Therefore, the Time Offset of thecall records must account for variations in both negative and positiveoffsets in fifteen (15) minute increments. The embodiment of the presentinvention satisfies this requirement by providing a Time Offsetrepresenting either positive or negative one minute increments.

There are two formulas used to convert local switch time to epoch timeand back.Epoch Time+(Sign Bit*Time Offset)=Local Switch Time  i)Local Switch Time−(Sign Bit*Time Offset)=Epoch Time  ii)

The switch records the Time Offset in the SER using a value where one(1) equals one (1) minute, and computes the Time Offset in seconds andadds this value to each local Timepoint 1 before the call record isrecorded. For example, Central Standard Time is six (6) hours beforeUTC. In this case, the Sign Bit indicates “1” for negative offset andthe Time Offset value recorded in the SER would be 360 (6 hours*60minutes/hour=360 minutes). See FIG. 35 for more details on the SERrecord format. When recording Timepoint 1 in the call record, the switchmultiplies the Time Offset by 60, because there is 60 seconds in each 1minute increment, and determines whether the offset is positive ornegative by checking the Sign Bit. This example results in a value of−21,600 (−1*360 minutes*60 seconds/minute=−21,600 seconds). Usingequation (ii) from above, if the local switch time were midnight, thecorresponding epoch time might be, for example, 1,200,000,000.Subtracting the Time Offset of −21,600 results in a corrected epoch timeof 1,200,021,600 seconds, which is the epoch time for 6 hours aftermidnight on the next day in epoch time. This embodiment works equally aswell in switches that are positioned on the East side of Greenwich wherethe Time Offset has a positive value.

Two commands are used when changing time. First. FIG. 38 illustrates thecontrol flow of the Change Time command, which changes the Local SwitchTime and the Time Offset. In FIG. 38, after a switch operator enters theChange Time command, the switch enters step 3802 and prompts the switchoperator for the Local Switch Time and Time Offset from UTC. In step3802 the switch operator enters a new Local Switch Time and Time Offset.Continuing to step 3804, the new time and Time Offset are displayed backto the switch operator. Continuing to step 3806, the switch operatormust verify the entered time and Time Offset before the actual time andoffset are changed on the switch. If in step 3806 the switch operatorverifies the changes, the switch proceeds to step 3808 and generates aSER with an Event Qualifier equal to two which identifies that thechange was made to the Local Switch Time and Time Offset of the switch.The billing center uses the SER for its bill processing. The switchproceeds to step 3810 and exits the command. Referring back to step3806, if the switch operator does not verify the changes, the switchproceeds to step 3810 and exits the command without updating the LocalSwitch Time and Time Offset. For more information on SER, see FIG. 35.

FIG. 39 illustrates the control flow for the Change Daylight SavingsTime command which is the second command for changing time. In FIG. 39,after a switch operator enters the Change Daylight Savings Time command,the switch enters step 3902 and prompts the switch operator to selecteither a Forward or Backward time change. Continuing to step 3904, theswitch operator makes a selection. In step 3904, if the switch operatorselects the Forward option, the switch enters step 3906. In step 3906,the switch sets the Local Switch Time forward one hour and adds one hour(count of 60) to the Time Offset. The switch then proceeds to step 3910.Referring back to step 3904, if the switch operator selects the Backwardoption, the switch sets the Local Switch Time back one hour and subtractone hour (count of 60) from the Time Offset. The switch then proceeds tostep 3910.

In step 3910, the switch operator must verify the forward or backwardoption and the new Local Switch Time and Time Offset before the actualtime change takes place. If in step 3910, the switch operator verifiesthe new time and Time Offset, the switch proceeds to step 3912 andgenerates a SER with an Event Qualifier equal to nine which changes theLocal Switch Time and Time Offset of the switch. The switch proceeds tostep 3914 and exits the command. Referring back to step 3910, if theswitch operator does not verify the changes, the switch proceeds to step3914 and exits the command without updating the Local Switch Time andTime Offset.

After the successful completion of a Change Daylight Savings TimeCommand, the billing records are affected by the new Time Offset. Thisembodiment allows the epoch time, used as the billing time, to incrementnormally through the daylight savings time change procedure, and not tobe affected by the change of Local Switch Time and Time Offset.

Network Call Identifier

An embodiment provides a unique NCID that is assigned to each telephonecall that traverses through the telecommunications network. Thus, theNCID is a discrete identifier among all network calls. The NCID istransported and recorded at each switch that is involved with thetelephone call.

The originating switch of a telephone call generates the NCID. Thechosen embodiment of the NCID of the present invention is an eighty-two(82) bit identifier that is comprised of the following subfields:

-   i) Originating Switch ID (14 bits): This field represents the NCS    Switch ID as defined in the Office Engineering table at each switch.    The SER call record, however, contains an alpha numeric    representation of the Switch ID. Thus, a switch uses the    alphanumeric Switch ID as an index into a database for retrieving    the corresponding NCS Switch ID.-   ii) Originating Trunk Group (14 bits): This field represents the    originating trunk group as defined in the 32/64-word call record    format described above.-   iii) Originating Port Number (19 bits): This field represents the    originating port number as defined in the 32/64-word call record    format described above.-   iv) Timepoint 1 (32 bits): This field represents the Timepoint 1    value as defined in the 32/64-word call record format described    above.-   v) Sequence Number (3 bits): This field represents the number of    calls which have occurred on the same port number with the same    Timepoint 1 (second) value. The first telephone call will have a    sequence number set to ‘0.’ This value increases incrementally for    each successive call which originates on the same port number with    the same Timepoint 1 value.

It would be readily apparent to one skilled in the relevant art tocreate an NCID of a different format. Each switch records the NCID ineither the 32 or 64-word call record format. Regarding the 32-word callrecord format, intermediate and terminating switches will record theNCID in the AuthCode field of the 32-word call record if the AuthCodefiled is not used to record other information. In this case, theOriginating Switch ID is the NCS Switch ID, not the alphanumeric SwitchID as recorded in the SER call record. If the AuthCode is used for otherinformation, the intermediate and terminating switches record the NCIDin the 64-word call record format. In contrast, originating switches donot use the AuthCode field when storing an NCID in a 32-word callrecord. Originating switches record the subfields of the NCID in thecorresponding separate fields of the 32-word call record. That is, theOriginating Switch ID is stored as an alphanumeric Switch ID in theSwitch ID field of the SER call record, the Originating Trunk Group isstored in the Originating Trunk Group field of the 32-word call record;the Originating Port Number is stored in the Originating Port field ofthe 32-word call record; the Timepoint 1 is stored in the Timepoint 1field of the 32-word call record: the Sequence Number is stored in theNCID Sequence Number field of the 32-word call record. The 32-word callrecord also includes an NCID Location (NCIDLOC) field to identify whenthe NCID recorded in the AuthCode field of the call record. If the NCIDLocation field contains a ‘1,’ then the AuthCode field contains theNCID. If the NCID Location field contains a ‘0,’ then the NCID is storedin its separate sub-fields in the call record. Only intermediate andterminating switches set the NCID Location field to a ‘1’ becauseoriginating switches store the NCID in the separate fields of the32-word call record.

Regarding the 64-word call record format, the expanded call recordincludes a separate field, call the NCID field, to store the 82 bits ofthe NCID. This call record is handled the same regardless of whether anoriginating, intermediate, or terminating switch stores the NCID. In the64-word call record format, the Originating Switch ID is the NCS SwitchID, not the alphanumeric Switch ID as recorded in the SER call record.

FIG. 40 illustrates the control flow of the Network Call Identifierswitch call processing. A call 3602 comes into a switch 1206-1210(called the current switch for reference purposes; the current switch isthe switch that is currently processing the call) at step 4004. In step4004, the current switch receives the call 3602 and proceeds to step4006. In step 4006, the current switch accesses a local database andgets the trunk group parameters associated with the originating trunkgroup of the call 3602. After getting the parameters, the current switchproceeds to step 4008. In step 4008, the current switch determines if itreceived an NCID with the call 3602. If the current switch did notreceive an NCID with the call 3602, the switch continues to step 4012.

In step 4012, the switch analyzes the originating trunk group parametersto determine the originating trunk group type. If the originating trunkgroup type is an InterMachine Trunk (IMT) or a release link trunk (RLT),then the switch proceeds to step 4016. An IMT is a trunk connecting twonormal telecommunication switches, whereas a RLT is a trunk connectingan intelligent services network (ISN) platform to a normaltelecommunication switch. When the current switch reaches step 4016, thecurrent switch knows that it is not an originating switch and that ithas not received an NCID. In step 4016, the current switch analyzes theoriginating trunk group parameters to determine whether it is authorizedto create an NCID for the call 3602. In step 4016, if the current switchis not authorized to create an NCID for the call 3602, the currentswitch proceeds to step 4018. When in step 4018, the current switchknows that it is not an originating switch, it did not receive an NCIDfor the call 3602, but is not authorized to generate an NCID. Therefore,in step 4018, the current switch writes the call record associated withthe call 3602 to the local switch database and proceeds to step 4020. Instep 4020, the current switch transports the call 3602 out through thenetwork with its associated NCID. Step 4020 is described below in moredetail.

Referring again to step 4016, if the current switch is authorized tocreate an NCID for the call 3602, the current switch proceeds to step4014. In step 4014, the current switch generates a new NCID for the call3602 before continuing to step 4036. In step 4036, the current switchwrites the call record, including the NCID, associated with the call3602 to the local switch database and proceeds to step 4020. In step4020, the current switch transports the call 3602 out through thenetwork with its associated NCID. Step 4020 is described below in moredetail.

Referring again to step 4012, if the current switch determines that theoriginating trunk group type is not an IMT or RLT, the current switchproceeds to step 4014. When reaching step 4014, the current switch knowsthat it is an originating switch and, therefore, must generate a NCIDfor the call 3602. Step 4014 is described below in more detail. Aftergenerating a NCID in step 4014, the current switch proceeds to step 4036to write the call record, including the NCID, associated with the call3602 to the local database. After writing the call record, the currentswitch proceeds to step 4020 to transport the call out through thenetwork with its associated NCID. Step 4020 is also described below inmore detail.

Referring again to step 4008, if the current switch determines that itreceived an NCID with the call 3602, the current switch proceeds to step4010. In step 4010, the current switch processes the received NCID. Instep 4010, there are two possible results. First, the current switch maydecide not to keep the received NCID thereby proceeding from step 4010to step 4014 to generate a new NCID. Step 4010 is described below inmore detail. In step 4014, the current switch may generate a new NCIDfor the call 3602 before continuing to step 4036. Step 4014 is alsodescribed below in more detail. In step 4036, the current switch writesthe call record associated with the call 3602 to the local database. Thecurrent switch then proceeds to step 4020 and transports the call 3602out through the network with its associated NCID. Step 4020 is alsodescribed below in more detail.

Referring again to step 4010, the current switch may decide to keep thereceived NCID thereby proceeding from step 4010 to step 4015. In step4015, the current switch adds the received NCID to the call recordassociated with the call 3602. Steps 4010 and 4015 are described belowin more detail. After step 4015, the current switch continues to step4036 where it writes the call record associated with the call 3602 tothe local database. The current switch then proceeds to step 4020 andtransports the call 3602 out through the network with its associatedNCID. Step 4020 is also described below in more detail.

FIG. 41 illustrates the control logic for step 4010 which processes areceived NCID. The current switch enters step 4102 of step 4010 when itdetermines that an NCID was received with the call 3602. In step 4102,the current switch analyzes the originating trunk group parameters todetermine the originating trunk group type. If the originating trunkgroup type is an IMT or RLT, then the current switch proceeds to step4112. When in step 4112, the current switch knows that it is not anoriginating switch and that it received an NCID for the call 3602.Therefore, in step 4112, the current switch keeps the received NCID andexits step 4010, thereby continuing to step 4015 in FIG. 40, after whichthe current switch will store the received NCID in the call record andtransport the call.

Referring again to step 4102, if the originating trunk group type is notan IMT or RLT, the current switch proceeds to step 4104. In step 4104,the current switch determines if the originating trunk group type is anIntegrated Services User Parts Direct Access Line (ISUP DAL) or anIntegrated Services Digital Network Primary Rate Interface (ISDN PRI).ISUP is a signaling protocol which allows information to be sent fromswitch to switch as information parameters. An ISUP DAL is a trunk groupthat primarily is shared by multiple customers of the network, but canalso be dedicated to a single network customer. In contrast, an ISDN PRIis a trunk group that primarily is dedicated to a single networkcustomer, but can also be shared by multiple network customers. Anetwork customer is an entity that leases network resources. In step4104, if the current switch determines that the trunk group type is notan ISUP DAL or ISDN PRI, the current switch proceeds to step 4106. Whenin step 4106, the current switch knows that it received an NCID that wasnot generated by a switch that is part of the telecommunication networkor by a switch that is a customer of the network. Therefore, in step4106, the current switch discards the received NCID because it is anunreliable NCID. From step 4106, the current switch exits step 4010,thereby continuing to step 4014 in FIG. 40 where the current switch willcreate a new NCID and transport that NCID with the call 3602.

Referring back to step 4104, if the current switch determines that theoriginating trunk group type is an ISUP DAL or ISDN PRI, the currentswitch continues to step 4108. When in step 4108, the current switchknows that it received an NCID from a customer trunk group. Therefore,the current switch analyzes the originating trunk group parameters todetermine whether it is authorized to create a new NCID for the call3602. The current switch may be authorized to create a new NCID andoverwrite the NCID provided by the customer to ensure that a valid NCIDcorresponds to the call 3602 and is sent through the network. In step4108, if the current switch is not authorized to create a new NCID forthe call 3602, the current switch proceeds to step 4110. In step 4110,the current switch checks the validity of the received NCID, forexample, the NCID length. If the received NCID is invalid, the currentswitch proceeds to step 4106. In step 4106, the current switch discardsthe invalid NCID. From step 4106, the current switch exits step 4010,thereby continuing to step 4014 in FIG. 40 where the current switch willcreate a new NCID and transport that NCID with the call 3602.

Referring again to step 4110, if the current switch determines that thereceived NCID is valid, the current switch proceeds to step 4112. Instep 4112 the current switch keeps the received NCID and exits step4010, thereby continuing to step 4015 in FIG. 40 where the currentswitch will store the received NCID in the call record and transport thecall.

FIG. 42 illustrates the control logic for step 4014 which generates anNCID. The current switch enters step 4202 when an NCID must be created.In step 4202, the current switch will calculate a sequence number. Thesequence number represents the number of calls which have occurred onthe same port number with the same Timepoint 1 value. The first call hasa sequence number value of ‘0,’ after which the sequence number willincrease incrementally for each successive call that originates on thesame port number with the same Timepoint 1 value. After creating thesequence number in step 4202, the current switch proceeds to step 4204.In step 4204, the current switch creates a call record for the call3602, including in it the call's 3602 newly created NCID. After the callrecord has been created, the current switch exits step 4014 and proceedsto step 4036 in FIG. 40 where the current switch writes the call recordto the local switch database.

FIG. 43 illustrates the control logic for step 4015 which adds areceived NCID to the call record associated with the call 3602. Uponentering step 4015, the current switch enters step 4302. When in step4302, the current switch knows that it has received a valid NCID from anintermediate or terminating switch, or from a customer switch. In step4302, the current switch determines if the AuthCode field of the 32-wordcall record is available for storing the NCID. If the AuthCode field isavailable, the current switch proceeds to step 4306. In step 4306, thecurrent switch stores the NCID in the AuthCode field of the 32-word callrecord. The current switch must also set the NCID Location field to thevalue ‘1’ which indicates that the NCID is stored in the AuthCode field.After step 4306, the current switch exits step 4015 and continues tostep 4036 in FIG. 40 where the current switch writes the call record tothe local switch database.

Referring again to step 4302, if the AuthCode field is not available inthe 32-word call record, the current switch proceeds to step 4304. Instep 4304, the current switch stores the NCID in the NCID field of the64-word call record. After step 4304, the current switch exits step 4015and continues to step 4036 in FIG. 40 where the current switch writesthe call record to the local switch database.

FIG. 44 illustrates the control logic for step 4020 which transports thecall from the current switch. There are two entry points for thiscontrol logic: steps 4402 and 4412. Upon entering step 4402 from step4036 on FIG. 40, the current switch knows that it has created an NCID orhas received a valid NCID. In step 4402, the current switch accesses alocal database and gets the trunk group parameters associated with theterminating trunk group for transporting the call 3602. After gettingthe parameters, the current switch proceeds to step 4404. In step 4404,the current switch determines the terminating trunk group type. If theterminating trunk is an ISUP trunk, the current switch proceeds to step4408. In step 4408, the current switch analyzes the parametersassociated with the ISUP trunk type to determine whether or not todeliver the NCID to the next switch. If the current switch is authorizedto deliver the NCID, the current switch proceeds to step 4416. In step4416, the current switch transports the call to the next switch alongwith a SS7 initial address message (IAM). The NCID is transported aspart of the generic digits parameter of the IAM. The IAM contains setupinformation for the next switch which prepares the next switch to acceptand complete the call 3602. The format of the generic digits parameteris shown below in Table 44A:

TABLE 44A Generic Digits Parameter: Code: 11000001 Type: 0 Byte#, Bit#Description byte 1, bits 0-4 Type of Digits: Indicates the contents ofthe parameter. This field has a binary value of ‘11011’ to indicate thatthe parameter contains the NCID. byte 1, bits 5-7 Encoding Scheme:Indicates the format of the parameter contents. This field has a binaryvalue of ‘011’ to indicate that the NCID is stored in the binary format.byte 2, bits 0-7 Originating Switch ID byte 3, bits 0-5 byte 3, bits 6-7Originating Trunk Group byte 4, bits 0-7 byte 5, bits 0-3 byte 5, bits4-7 Originating Port Number byte 6, bits 0-7 byte 7, bits 0-6 byte 7,bit 7 Not Used byte 8, bits 0-7 Timepoint 1 byte 9, bits 0-7 byte 10,bits 0-7 byte 11, bits 0-7 byte 12, bits 0-2 NCID Sequence Number byte12, bits 3-7 Not Used

After transporting the call 3602 and the IAM, the current switchproceeds to step 4418, thereby exiting the switch processing.

Referring again to step 4408, if the current switch is not authorized todeliver the NCID to the next switch in an IAM message, the currentswitch proceeds to step 4412. In step 4412, the current switchtransports the call 3602 to the next switch under normal procedureswhich consists of sending an IAM message to the next switch without theNCID recorded as part of the generic digits parameter. Aftertransporting the call 3602, the current switch proceeds to step 4418,thereby exiting the switch processing.

Referring again to step 4404, if the current switch determines that theterminating trunk is not an ISUP, the current switch proceeds to step4406. In step 4406, the current switch determines if the terminatingtrunk group is an ISDN trunk (the terminating trunk group is dedicatedto one network customer). If the terminating trunk group is an ISDN, thecurrent switch proceeds to step 4410. In step 4410, the current switchanalyzes the parameters associated with the ISDN trunk group type todetermine whether or not to deliver the NCID to the next switch. If thecurrent switch is authorized to deliver the NCID, the current switchproceeds to step 4114. In step 4114, the current switch transports thecall to the next switch along with a setup message. The setup messagecontains setup information for the next switch which prepares the nextswitch to accept and complete the call 3602. The NCID is transported aspart of the locking shift codeset 6 parameter of the setup message. Theformat of the locking shift codeset 6 parameter is shown below in Table41B:

TABLE 44B Locking Shift Codeset 6 Parameter: Code: 11000001 Type: 0Byte#, Bit# Description byte 1, bits 0-4 Type of Digits: Indicates thecontents of the parameter. This field has a binary value of ‘11011’ toindicate that the parameter contains the NCID. byte 1, bits 5-7 EncodingScheme: Indicates the format of the parameter contents. This field has abinary value of ‘011’ to indicate that the NCID is stored in the binaryformat. byte 2, bits 0-7 Originating Switch ID byte 3, bits 0-5 byte 3,bits 6-7 Originating Trunk Group byte 4, bits 0-7 byte 5, bits 0-3 byte5, bits 4-7 Originating Port Number byte 6, bits 0-7 byte 7, bits 0-6byte 7, bit 7 Not Used byte 8, bits 0-7 Timepoint 1 byte 9, bits 0-7byte 10, bits 0-7 byte 11, bits 0-7 byte 12, bits 0-2 NCID SequenceNumber byte 12, bits 3-7 Not Used

After transporting the call 3602 and the setup message, the currentswitch proceeds to step 4418, thereby exiting the switch processing.

Referring again to step 4410, if the current switch determines that itdoes not have authority to deliver the NCID to the next switch in asetup message, the current switch proceeds to step 4412. In step 4412,the current switch transports the call 3602 to the next switch undernormal procedures which consists of sending a setup message to the nextswitch without the NCID recorded as part of the locking shift codeset 6parameter. After transporting the call 3602, the current switch proceedsto step 4418, thereby exiting the switch processing.

Referring again to step 4412, this step is also entered from step 4018on FIG. 40 when the current switch did not receive an NCID, is anintermediate or terminating switch, and is not authorized to create anNCID. In this case, in step 4412, the current switch also transports thecall 3602 to the next switch under normal procedures which consists ofsending an IAM or setup message to the next switch without the NCIDrecorded as part of the parameter. After transporting the call 3602, thecurrent switch proceeds to step 4418, thereby exiting the switchprocessing.

A system and method for the switches of a telecommunications network togenerate call records for telephone calls using a flexible andexpandable record format. Upon receipt of a telephone call, a switch inthe network analyzes the telephone call to determine whether the defaultcall record is sufficiently large to store call record informationpertaining to the telephone call, or whether the expanded call recordmust be used to store the call information pertaining to the telephonecall. After determining which call record to use, the switch generatesthe default or expanded call record. The switch sends a billing block,comprised of completed call records, to a billing center upon filling anentire billing block.

Introduction to a Callback Telephony System in Accordance with aPreferred Embodiment

In today's telephony environment, a caller must contact an operator toinitiate a conference call and/or have all parties dial a common numberto connect into a conference call. This requires the cost of a humanoperator and the inconvenience of dialing a predefined number to becarried as overhead of each conference call. It also makes it veryinefficient to schedule a conference call and assure that all partiesare available to participate. It also requires a dedicated number forall the parties to access to facilitate the call.

In accordance with a preferred embodiment, a callback system isfacilitated by a caller accessing a display from a computer and fillingout information describing the parameters of a call. Information such asthe date and time the call should be initiated, billing information, andtelephone numbers of parties to participate in the call could becaptured. Then, based on the information entered, a central ordistributed computing facility with access to the hybrid networktransmits e-mail in a note to each party required for the call copyingthe other parties to verify participation and calendar the event. Thee-mail would include any particulars, such as the password associatedwith the call and time the call would be commenced. The necessarynetwork facilities would also be reserved to assure the appropriateQuality of Service (QOS) would be available, and when the date and timerequested arrived, the call is initiated by contacting each of theparticipants whether they be utilizing a telephone attached to a PSTN ora voice capable apparatus (such as a computer or intelligent television)attached to the hybrid network. At any time during scheduling,initiation or duration of the call, any party could request operatorassistance by selecting that service from the display associated withthe call. Thus, a completely automated callback system is provided forcall setup and control.

For callers that utilize the callback system on a regular basis a customprofile is provided as an extension to the users existing profileinformation. The custom profile allows a user to store frequentconference call participants information. The profile containsparticipant's telephone numbers (which could be DDD, IDDD, IP Address orCellular phone number), E-mail address, paging service, fax number,secretary phone number, location, time zone, working hours and otherpertinent information that will be useful for initiating a call. Defaultprofiles based on company or organization needs are also enabled and canbe tailored to meet the needs of a particular user based on more globalinformation.

Billing information would also be provided online. A user could enter apre-arranged billing number or the ability to bill to a credit card ortelephone number. If billing to a telephone number, the system treatsthe call like a collect or third party call to verify billing.

If profile information were predefined for a particular call scenario,then another option would allow an immediate connection of a conferencecall or single call at the press of a button, much as speed dialing isperformed today except that more than one caller could be joined withoutintervention of the calling party, Internet callers are supported and anoperator can be joined as required.

Before describing this aspect of the present invention, a description ofinternet environment is presented.

Internet

The Internet is a method of interconnecting physical networks and a setof conventions for using networks that allow the computers they reach tointeract. Physically, the Internet is a huge, global network spanningover 92 countries and comprising 59,000 academic, commercial,government, and military networks, according to the GovernmentAccounting Office (GAO), with these numbers expected to double eachyear. Furthermore, there are about 10 million host computers, 50 millionusers, and 76,000 World-Wide Web servers connected to the Internet. Thebackbone of the Internet consists of a series of high-speedcommunication links between major supercomputer sites and educationaland research institutions within the U.S. and throughout the world.

Protocols govern the behavior along the Internet backbone and thus setdown the key rules for data communication. Transmission ControlProtocol/Internet Protocol (TCP/IP) has an open nature and is availableto everyone, meaning that it attempts to create a network protocolsystem that is independent of computer or network operating system andarchitectural differences. As such, TCP/IP protocols are publiclyavailable in standards documents, particularly in Requests for Comments(RFCs). A requirement for Internet connection is TCP/IP, which consistsof a large set of data communications protocols, two of which are theTransmission Control Protocol and the Internet Protocol.

The International Telecommunication Union-TelecommunicationStandardization Sector (“ITU-T”) has established numerous standardsgoverning protocols and line encoding for telecommunication devices.Because many of these standards are referenced throughout this document,summaries of the relevant standards are listed below for reference.

-   ITU G.711 Recommendation for Pulse Code Modulation of 3 kHz Audio    Channels.-   ITU G.722 Recommendation for 7 kHz Audio Coding within a 64 kbit/s    channel.-   ITU G.723 Recommendation for dual rate speech coder for multimedia    communication transmitting at 5.3 and 6.3 kbits.-   ITU G.728 Recommendation for coding of speech at 16 kbit/s using    low-delay code excited linear prediction (LD-CELP)-   ITU H.221 Frame Structure for a 64 to 1920 kbit/s Channel m    Audiovisual Teleservices-   ITU H.223 Multiplexing Protocols for Low Bitrate Multimedia    Terminals-   ITU H.225 ITU Recommendation for Media Stream Packetization and    Synchronization on non-guaranteed quality of service LANs.-   ITU H.230 Frame-synchronous Control and Indication Signals for    Audiovisual Systems-   ITU H.231 Multipoint Control Unit for Audiovisual Systems Using    Digital Channels up to 2 Mbit/s-   ITU H.242 System for Establishing Communication Between Audiovisual    Terminals Using Digital Channels up to 2 Mbits-   ITU H.243 System for Establishing Communication Between Three or    More Audiovisual Terminals Using Digital Channels up to 2 Mbit/s-   ITU H.245 Recommendation for a control protocol for multimedia    communication-   ITU H.261 Recommendation for Video Coder-Decoder for audiovisual    services supporting video resolutions of 352×288 pixels and 176×144    pixels.-   ITU H.263 Recommendation for Video Coder-Decoder for audiovisual    services supporting video resolutions of 128×96 pixels, 176×144    pixels, 352×288 pixels, 704×576 pixels and 1408×1152 pixels.-   ITU H.320 Recommendation for Narrow Band ISDN visual telephone    systems.-   ITU H.321 Visual Telephone Terminals over ATM-   ITU H.322 Visual Telephone Terminals over Guaranteed Quality of    Service LANs-   ITU H.323 ITU Recommendation for Visual Telephone Systems and    Equipment for Local Area Networks which provide a non-guaranteed    quality of service.-   ITU H.324 Recommendation for Terminals and Systems for low bitrate    (28.8 Kbps) multimedia communication on dial-up telephone lines.-   ITU T.120 Transmission Protocols for Multimedia Data.

In addition, several other relevant standards exist including:

-   ISDN Integrated Services Digital Network, the digital communication    standard for transmission of voice, video and data on a single    communications link.-   RTP Real-Time Transport Protocol, an Internet Standard Protocol for    transmission of real-time data like voice and video over unicast and    multicast networks.-   IP Internet Protocol, an Internet Standard Protocol for transmission    and delivery of data packets on a packet switched network of    interconnected computer systems.-   PPP Point-to-Point Protocol-   MPEG Motion Pictures Expert Group, a standards body under the    International Standards Organization (ISO), Recommendations for    compression of digital Video and Audio including the bit stream but    not the compression algorithms.-   SLIP Serial Line Internet Protocol-   RSVP Resource Reservation Setup Protocol-   UDP User Datagram Protocol

The popularity of the TCP/IP protocols on the Internet grew rapidlybecause they met an important need for worldwide data communication andhad several important characteristics that allowed them to meet thisneed. These characteristics, still in use today, include:

-   A common addressing scheme that allows any device running TCP/IP to    uniquely address any other device on the Internet.-   Open protocol standards, freely available and developed    independently of any hardware or operating system. Thus, TCP/IP is    capable of being used with different hardware and software, even if    Internet communication is not required.

Independence from any specific physical network hardware, allows TCP/IPto integrate many different kinds of networks. TCP/IP can be used overan Ethernet, a token ring, a dial-up line, or virtually any other kindsof physical transmission media.

An understanding of how information travels in communication systems isrequired to appreciate the recent steps taken by key players in today'sInternet backbone business. The traditional type of communicationnetwork is circuit switched. The U.S. telephone system uses such circuitswitching techniques. When a person or a computer makes a telephonecall, the switching equipment within the telephone system seeks out aphysical path from the originating telephone to the receiver'stelephone. A circuit-switched network attempts to form a dedicatedconnection, or circuit, between these two points by first establishing acircuit from the originating phone through the local switching office,then across trunk lines, to a remote switching office, and finally tothe destination telephone. This dedicated connection exists until thecall terminates.

The establishment of a completed path is a prerequisite to thetransmission of data for circuit switched networks. After the circuit isin place, the microphone captures analog signals, and the signals aretransmitted to the Local Exchange Carrier (LEC) Central Office (CO) inanalog form over an analog loop. The analog signal is not converted todigital form until it reaches the LEC Co, and even then only if theequipment is modem enough to support digital information. In an ISDNembodiment, however, the analog signals are converted to digital at thedevice and transmitted to the LEC as digital information.

Upon connection, the circuit guarantees that the samples can bedelivered and reproduced by maintaining a data path of 64 Kbps (thousandbits per second). This rate is not the rate required to send digitizedvoice per se. Rather, 64 Kbps is the rate required to send voicedigitized with the Pulse Code Modulated (PCM) technique. Many othermethods for digitizing voice exist, including ADPCM (32 Kbps), GSM (13Kbps), TrueSpeech 8.5 (8.5 Kbps), G.723 (6.4 Kbps or 5.3 Kbps) andVoxware RT29HQ (2.9 Kbps). Furthermore, the 64 Kbps path is maintainedfrom LEC Central Office (CO) Switch to LEC CO, but not from end to end.The analog local loop transmits an analog signal, not 64 Kbps digitizedaudio. One of these analog local loops typically exists as the “lastmile” of each of the telephone network circuits to attach the localtelephone of the calling party.

This guarantee of capacity is the strength of circuit-switched networks.However, circuit switching has two significant drawbacks. First, thesetup time can be considerable, because the call signal request may findthe lines busy with other calls; in this event, there is no way to gainconnection until some other connection terminates. Second, utilizationcan be low while costs are high. In other words, the calling party ischarged for the duration of the call and for all of the time even if nodata transmission takes place (i.e. no one speaks). Utilization can below because the time between transmission of signals is unable to beused by any other calls, due to the dedication of the line. Any suchunused bandwidth during the connection is wasted.

Additionally, the entire circuit switching infrastructure is builtaround 64 Kbps circuits. The infrastructure assumes the use of PCMencoding techniques for voice. However, very high quality codecs areavailable that can encode voice using less than one-tenth of thebandwidth of PCM. However, the circuit switched network blindlyallocates 64 Kbps of bandwidth for a call, end-to-end, even if onlyone-tenth of the bandwidth is utilized. Furthermore, each circuitgenerally only connects two parties. Without the assistance ofconference bridging equipment, an entire circuit to a phone is occupiedin connecting one party to another party. Circuit switching has nomulticast or multipoint communication capabilities, except when used incombination with conference bridging equipment.

Other reasons for long call setup time include the different signalingnetworks involved in call setup and the sheer distance causingpropagation delay. Analog signaling from an end station to a CO on a lowbandwidth link can also delay call setup. Also, the call setup datatravels great distances on signaling networks that are not alwaystransmitting data at the speed of light. When the calls areinternational, the variations in signaling networks grows, the equipmenthandling call setup is usually not as fast as modem setup and thedistances are even greater, so call setup slows down even more. Further,in general, connection-oriented virtual or physical circuit setup, suchas circuit switching, requires more time at connection setup time thancomparable connectionless techniques due to the end-to-end handshakingrequired between the conversing parties.

Message switching is another switching strategy that has beenconsidered. With this form of switching, no physical path is establishedin advance between the sender and receiver; instead, whenever the senderhas a block of data to be sent, it is stored at the first switchingoffice and retransmitted to the next switching point after errorinspection. Message switching places no limit on block size, thusrequiring that switching stations must have disks to buffer long blocksof data; also, a single block may tie up a line for many minutes,rendering message switching useless for interactive traffic.

Packet switched networks, which predominate the computer networkindustry, divide data into small pieces called packets that aremultiplexed onto high capacity intermachine connections. A packet is ablock of data with a strict upper limit on block size that carries withit sufficient identification necessary for delivery to its destination.Such packets usually contain several hundred bytes of data and occupy agiven transmission line for only a few tens of milliseconds. Delivery ofa larger file via packet switching requires that it be broken into manysmall packets and sent one at a time from one machine to the other. Thenetwork hardware delivers these packets to the specified destination,where the software reassembles them into a single file.

Packet switching is used by virtually all computer interconnectionsbecause of its efficiency in data transmissions. Packet switchednetworks use bandwidth on a circuit as needed, allowing othertransmissions to pass through the lines in the interim. Furthermore,throughput is increased by the fact that a router or switching officecan quickly forward to the next stop any given packet, or portion of alarge file, that it receives, long before the other packets of the filehave arrived. In message switching, the intermediate router would haveto wait until the entire block was delivered before forwarding. Today,message switching is no longer used in computer networks because of thesuperiority of packet switching.

To better understand the Internet, a comparison to the telephone systemis helpful. The public switched telephone network was designed with thegoal of transmitting human voice, m a more or less recognizable form.Their suitability has been improved for computer-to-computercommunications but remains far from optimal. A cable running between twocomputers can transfer data at speeds in the hundreds of megabits, andeven gigabits per second. A poor error rate at these speeds would beonly one error per day. In contrast, a dial-up line, using standardtelephone lines, has a maximum data rate in the thousands of bits persecond, and a much higher error rate. In fact, the combined bit ratetimes error rate performance of a local cable could be 11 orders ofmagnitude better than a voice-grade telephone line. New technology,however, has been improving the performance of these lines.

The Internet is composed of a great number of individual networks,together forming a global connection of thousands of computer systems.After understanding that machines are connected to the individualnetworks, we can investigate how the networks are connected together toform an internetwork, or an internet. At this point, internet gatewaysand internet routers come into play.

In terms of architecture, two given networks are connected by a computerthat attaches to both of them. Internet gateways and routers providethose links necessary to send packets between networks and thus makeconnections possible. Without these links, data communication throughthe Internet would not be possible, as the information either would notreach its destination or would be incomprehensible upon arrival. Agateway may be thought of as an entrance to a communications networkthat performs code and protocol conversion between two otherwiseincompatible networks. For instance, gateways transfer electronic mailand data files between networks over the internet.

IP Routers are also computers that connect networks and is a newer termpreferred by vendors. These routers must make decisions as to how tosend the data packets it receives to its destination through the use ofcontinually updated routing tables. By analyzing the destination networkaddress of the packets, routers make these decisions. Importantly, arouter does not generally need to decide which host or end user willreceive a packet; instead, a router seeks only the destination networkand thus keeps track of information sufficient to get to the appropriatenetwork, not necessarily the appropriate end user. Therefore, routers donot need to be huge supercomputing systems and are often just machineswith small main memories and little disk storage. The distinctionbetween gateways and routers is slight, and current usage blurs the lineto the extent that the two terms are often used interchangeably. Incurrent terminology, a gateway moves data between different protocolsand a router moves data between different networks. So a system thatmoves mail between TCP/IP and OSI is a gateway, but a traditional IPgateway (that connects different networks) is a router.

Now, it is useful to take a simplified look at routing in traditionaltelephone systems. The telephone system is organized as a highlyredundant, multilevel hierarchy. Each telephone has two copper wirescoming out of it that go directly to the telephone company's nearest endoffice, also called a local central office. The distance is typicallyless than 10 km; in the U.S. alone, there are approximately 20,000 endoffices. The concatenation of the area code and the first three digitsof the telephone number uniquely specify an end office and help dictatethe rate and billing structure.

The two-wire connections between each subscriber's telephone and the endoffice are called local loops. If a subscriber attached to a given endoffice calls another subscriber attached to the same end office, theswitching mechanism within the office sets up a direct electricalconnection between the two local loops. This connection remains intactfor the duration of the call, due to the circuit switching techniquesdiscussed earlier.

If the subscriber attached to a given end office calls a user attachedto a different end office, more work has to be done in the routing ofthe call. First, each end office has a number of outgoing lines to oneor more nearby switching centers, called toll offices. These lines arecalled toll connecting trunks. If both the caller's and the receiver'send offices happen to have a toll connecting trunk to the same tolloffice, the connection may be established within the toll office. If thecaller and the recipient of the call do not share a toll office, thenthe path will have to be established somewhere higher up in thehierarchy. There are sectional and regional offices that form a networkby which the toll offices are connected. The toll, sectional, andregional exchanges communicate with each other via high bandwidthinter-toll trunks. The number of different kinds of switching centersand their specific topology varies from country to country, depending onits telephone density.

Using Network Level Communication for Smooth User Connection

In addition to the data transfer functionality of the Internet, TCP/IPalso seeks to convince users that the Internet is a solitary, virtualnetwork. TCP/IP accomplishes this by providing a universalinterconnection among machines, independent of the specific networks towhich hosts and end users attach. Besides router interconnection ofphysical networks, software is required on each host to allowapplication programs to use the Internet as if it were a single, realphysical network.

The basis of Internet service is an underlying, connectionless packetdelivery system run by routers, with the basic unit of transfer beingthe packet. In internets running TCP/IP, such as the Internet backbone,these packets are called datagrams. This section will briefly discusshow these datagrams are routed through the Internet.

In packet switching systems, routing is the process of choosing a pathover which to send packets. As mentioned before, routers are thecomputers that make such choices. For the routing of information fromone host within a network to another host on the same network, thedatagrams that are sent do not actually reach the Internet backbone.This is an example of internal routing, which is completelyself-contained within the network. The machines outside of the networkdo not participate in these internal routing decisions.

At this stage, a distinction should be made between direct delivery andindirect delivery. Direct delivery is the transmission of a datagramfrom one machine across a single physical network to another machine onthe same physical network. Such deliveries do not involve routers.Instead, the sender encapsulates the datagram in a physical frame,addresses it, and then sends the frame directly to the destinationmachine.

Indirect delivery is necessary when more than one physical network isinvolved, in particular when a machine on one network wishes tocommunicate with a machine on another network. This type ofcommunication is what we think of when we speak of routing informationacross the Internet backbone. In indirect delivery, routers arerequired. To send a datagram, the sender must identify a router to whichthe datagram can be sent, and the router then forwards the datagramtowards the destination network. Recall that routers generally do notkeep track of the individual host addresses (of which there aremillions), but rather just keeps track of physical networks (of whichthere are thousands). Essentially, routers in the Internet form acooperative, interconnected structure, and datagrams pass from muter torouter across the backbone until they reach a router that can deliverthe datagram directly.

The changing face of the internet world causes a steady inflow of newsystems and technology. The following three developments, each likely tobecome more prevalent in the near future, serve as an introduction tothe technological arena.

Asynchronous Transfer Mode (ATM) is a networking technology using ahigh-speed, connection-oriented system for both local area and wide areanetworks. ATM networks require modem hardware including:

-   High speed switches that can operate at gigabit (trillion bit) per    second speeds to handle the traffic from many computers.-   Optical fibers (versus copper wires) that provide high data transfer    rates, with host-to-ATM switch connections running at 100 or 155    Mbps (million bits per second).-   3) Fixed size cells, each of which includes 53 bytes.

ATM incorporates features of both packet switching and circuitswitching, as it is designed to carry voice, video, and televisionsignals in addition to data. Pure packet switching technology is notconducive to carrying voice transmissions because such transfers demandmore stable bandwidth.

Frame relay systems use packet switching techniques, but are moreefficient than traditional systems. This efficiency is partly due to thefact that they perform less error checking than traditional X.25packet-switching services. In fact, many intermediate nodes do little orno error checking at all and only deal with routing, leaving the errorchecking to the higher layers of the system. With the greaterreliability of today's transmissions, much of the error checkingpreviously pertformed has become unnecessary. Thus, frame relay offersincreased performance compared to traditional systems.

An Integrated Services Digital Network is an “internationaltelecommunications standard for transmitting voice, video, and data overdigital lines,” most commonly running at 64 kilobits per second. Thetraditional phone network runs voice at only 4 kilobits per second. Toadopt ISDN, an end user or company must upgrade to ISDN terminalequipment, central office hardware, and central office software. Theostensible goals of ISDN include the following:

-   1) To provide an internationally accepted standard for voice, data    and signaling;-   2) To make all transmission circuits end-to-end digital;-   3) To adopt a standard out-of-band signaling system; and-   4) To bring significantly more bandwidth to the desktop.

An ISP is composed of several disparate systems. As ISP integrationproceeds, formerly independent systems now become part of one largerwhole with concomitant increases in the level of analysis, testing,scheduling, and training in all disciplines of the ISP.

Internet Service Potential

Real-time view of the status of each conference call participant, ANIand an alphanumeric representation to identify each participant enteredby the initiator when a call is “reserved” can be displayed on screen asparticipants connect to conference. This information is captured as partof the call record set forth earlier and detailed in the appendix.

In an alternative embodiment, a conference call without callback leg isenabled. In this embodiment, a callback customer participates through aVoice Over Network (VON) application utilizing a computer with voicecapability, and can initiate a video screen popup on the computerdisplay for manual operator assistance as detailed above in thedescription of a video operator.

Self-Regulating System

An expert system monitors each call in accordance with a preferredembodiment. The system includes rules that define what logic to executewhen an exception occurs. The rules include specialized processing basedon whether the call is routed via a PSTN or the internet. In addition,the system includes a default connection to a manual operator if noother correction of the connection is available. For example, if acaller hangs up during a teleconference and other callers are stillconnected, an exception message is sent to each of the still connectedcallers informing them of the status change. Another aspect of theexpert system is to ensure quality of service (QOS) and produce reportsindicating both integrity and exceptions. Scheduling of resources istied to this expert system, which regulates whether calls can bescheduled based on available or projected resources at the time of theproposed call. For example, since all calls used by this system areinitiated by the callback switch, if there are insufficient outgoingtrunk ports during the period of time that a callback subscriberrequests, then the callback subscriber is prompted to select anothertime or denied access to the resources for that time. This is utilizedto predict when additional ports and/or resources are required.

Fault Management

The NGN operations architecture specifies the points of insertion andcollections for network wide events that feed the Fault Managementsystems. Since the components of the packet portion of the hybrid NGNinfrastructure are in most cases manageable by SNMP or some otherstandard management protocol the major challenges are the following:

-   1. Correlation of the events from the packet infrastructure with the    Core circuit-based network events to provide the operators with a    seamless service oriented view of the overall health of the network;-   2. Event gathering and interpretation from the Core circuit network    elements; and-   3. Mediation and standardization of the network messages to aid    processing by the network management framework of the NGN.

The network management components of the NGN provide comprehensivesolutions to address these challenges. Correlation is provided by theuse of rules based inference engines. Event gathering and interpretationis typically performed by custom development of software interfaceswhich communicate directly with the network elements, process raw eventsand sort them by context prior to storing them. For example, alarmsversus command responses. The mediation and standardization challenge isaddressed by using a comprehensive library of all possible message typesand network events categorize the numerous messages that the NGNgenerates.

FIG. 45 is a flowchart showing a Fault Management Process 4500 inaccordance with a preferred embodiment of the present invention. TheFault Management Process 4500 begins with a transmitting step 4502. Instep 4502, data is transmitted over the hybrid network, including videoand mixed audio information. The data transmission generally makes fulluse of the hybrid networks mixed circuit-switched an packet-switchedcomponents. As discussed above, the hybrid network includesapproximately all the advantages of a packet based network while stillmaking use of the older circuit-switched components already in place.The system is able to do this by correlating events raised by both thecircuit-switched and packet-switch network elements, as discussed laterin relation to event and correlating steps 4504 and 4506.

In a circuit-switched event gathering step 4504, an event is obtainedfrom a circuit-switched based network element. As discussed above, eventgathering and interpretation is typically performed by custom developedsoftware interfaces which communicate directly with the networkelements, process raw network events, and sort the events by contextprior to storing them. After obtaining the events, the events arecorrelated in a correlation step 4506.

In a correlation step 4506, the event gathered in step 4504 iscorrelated with a second event obtained from a packet-switched networkelement. As with circuit-switched network elements, packet-switchedevent gathering and interpretation is typically performed by customdeveloped software interfaces which communicate directly with thenetwork elements, process raw network events, and sort the events bycontext prior to storing them. As discussed above, the correlation ispreferably provided by a rules based inference engine. After the eventsare correlated, a fault message is created in a fault message step 4508.

In a fault message step 4508, a fault message is created based on thecorrelated first and second events obtained in steps 4504 and 4506.Preferably the fault message is created utilizing a comprehensivelibrary of all possible message types and network events whichcategorizes the numerous messages that the hybrid network generates.

FIG. 46 is a block diagram showing a Fault Management component 4600 inaccordance with a preferred embodiment of the present invention. TheFault Management component 4600 records failures and exceptions innetwork devices (e.g. network routers or UNIX servers) and performs thefollowing operations:

-   1) performs root-cause correlation of the failures and exceptions;-   2) immediately takes corrective and/or informative actions such as    sending a page, logging a help desk ticket, sending an electronic    mail message, or calling a resolution script;-   3) stores the information into a Database Component for later    analysis by the Reporting Component; and-   4) allows real time viewing of faults in a network map and network    event views.

The Fault Management component 4600 includes the following elements:

-   UNIX Servers 4602—Any UNIX Server with BMC Patrol clients loaded.-   NT Servers 4604—Any NT Server with BMC Patrol clients loaded.-   SNM P Devices 4606—Any SNMP manageable device.

HP OV Network Node Manager (Collector Component) 4608—HP OpenViewNetwork Node Manager is one product which performs several functions. Inthis context it is it is responsible for receiving performanceinformation from BMC Patrol clients via BMC Patrol View.

Seagate NerveCenter 4610—In a fault management context, SeagateNerveCenter performs root-cause correlation of faults and events acrossthe network.

HP OV Network Node Manager Network Map 4612—HP OpenView Network NodeManager is one product which performs several functions. In this contextit is responsible for maintaining and displaying the node level networkmap of the network the MNSIS architecture monitors.

HP OV Network Node Manager 4614—HP OpenView Network Node Manager is oneproduct which performs several functions. In this context it is it isresponsible for receiving and displaying all events, regardless of theirsource.

Netcool HP OV NNM Probe 4616—An Omnibus Netcool probe which is installedon the same system as HP OV Network Node Manager and forwards events tothe Omnibus Netcool Object Server.

Micromuse Internet Service Monitors 4618—An Omnibus Netcool suite ofactive probes (monitors) which monitor internet services such as FTP,POP3, SMTP, NNTP, DNS, HTTP, and RADIUS. These monitors collectavailability and performance data and forward the information as alertsto the Omnibus Netcool Object Server.

Netcool Object Server 4620—The Omnibus Netcool Object Server is areal-time memory resident database which stores all current events(alerts). The events are viewable by operations personnel using a numberof event lists and views, all of which are highly customizable by eachoperator.

Notification Spooler 4622—A custom provided sub-component which spoolsjob-files that specify which events have occurred for possiblenotifications.

Spooled Job 4624—Each spooled job represents a specific event that wasreceived by the Netcool Object Server and may need to result in one ormore notification actions. Each job is stored as a file in a specialnotification spool directory.

Notification Actor 4626—A custom provided sub-component which determinesthe alert time, source node, and alert type from the loaded spooled joband initiates notification actions based as specified in theconfiguration file. Notification actions include alphanumeric pages,trouble tickets, email, and resolution scripts. Multiple notificationactions can be specified in the configuration files such that differentactions are taken for different alert times, source nodes, and/or alerttypes. Default actions are also supported.

Alphanumeric Page 4628—An alphanumeric page sent using Telamon TelAlertvia modem dialing the relevant paging provider. The alphanumeric pagemessage provides contextual notification of actions to be performed.Context can include any information but frequently contains informationsuch as the device name, problem description, and priority.

Electronic Mail Message 4630—An internet mail message send using theUNIX mail utility. The mail message is frequently used to providenon-urgent notification of situations or actions automatically performedby the MNSIS architecture along with detailed context.

Local Script Execution 4632—Initiates any local script on the machine,which may initiate scripts or applications on other machines.

Remedy Gateway 4634—The Omnibus Netcool Remedy Gateway automaticallyreads alerts in the Netcool Object Server and opens tickets withinRemedy as customized by the user. The Remedy trouble ticket ID isreturned to the Omnibus and can be viewed as further reference.

Remedy 4636—Remedy Action Request System, a trouble ticketing system.

Oracle Gateway 4638—The Omnibus Netcool Oracle Gateway automaticallyreads alerts in the Netcool Object Server and logs records within Oracleas customized by the user.

Oracle 4640—Oracle is a relational database management system.

Generate Time Key Script 4642—Script which generates New Time Recordsfrom alerts in the Netcool Object Server.

New Time Records 4644—Time records corresponding to new alerts inNetcool Object Server which need to be added to the Oracle time tables.

SOL Loader Script 4646—A custom script which automatically loads recordsinto Oracle via SQL Loader Direct Load.

Proactive Threshold Manager

The Proactive Threshold Manager is an automated network manager thatforewarns service providers of a chance that a service level agreementto maintain a certain level of service is in danger of being breached.

The Proactive Threshold Manager provides real-time threshold analysis(that is, it continuously monitors for plan thresholds that have beenexceeded) using algorithms. It receives call detail records from theServer and returns alarms which may be retrieved and examined using anNGN workstation. The threshold manager resides on an NGN hybrid networkcomputer.

A threshold generally is a number which, when exceeded, generates analarm in the Proactive Threshold Manager indicating possible breach of aservice level agreement. Thresholds may be specified for the time of dayand/or the day of the week. Furthermore, a threshold may be applied toeach category for which the Proactive threshold manager keeps counts,including the number of short-duration calls, long-duration calls, andcumulative minutes.

When an alarm is generated by the Proactive Threshold Manager, it isalso prioritized. The priority is a multiple of the number of times athreshold has been exceeded. For example, if the threshold was 10 andthe relevant count has reached 50, then the priority of the alarm is 5(50.div.10).

Each alarm is available to an NGN hybrid network analyst via an NGNWorkstation. The workstation is a PC with access to a Server andretrieves the next available alarm of the highest priority. The analystinvestigates the alarm data and, if a service level agreement breach issuspected, notifies the provider and suggests appropriate actions tostop the breach.

FIG. 47 is a flowchart showing a Proactive Threshold Management Process4700 in accordance with a preferred embodiment of the present invention.The process begins with a monitoring step 4702. In step 4702, theProactive Threshold Manager monitors the NGN hybrid network. TheProactive Threshold Manager generally monitors the network at all timesto ensure proper service is provided to subscribers of the network, byassisting service providers in maintaining a proper level of service.

In a minimum level determination step 4704, the Proactive ThresholdManager determines the minimum level of service needed to avoidbreaching subscriber service level agreements. Service level agreementinformation is generally provided to the Proactive Threshold Manager bythe rules database which contains most pertinent subscriber information.

In a sensing step 4706, the Proactive Threshold Manager senses thecurrent level of service which is being provided to customers. Protocolconverters assist the Proactive Threshold Manager in communicating withvarious components of the system. Protocol converters are able totranslate information between the packet-switched an circuit-switchedsystem components, thus allowing the Proactive Threshold Manager tocommunicate with all the components of the hybrid system.

In a comparing step 4708, the Proactive Threshold Manager compares thecurrent level of service, sensed in step 4706, with the minimum level ofservice, determined in step 4704, to determine where the current levelof service is in relation to the minimum level service which needs to beprovided to subscribers.

In an alarm step 4710, the Proactive Threshold Manager provides anindication or alarm to the service provider if the current level ofservice is within a predetermined range with respect to the minimumlevel of service. The threshold is preferably chosen such that theservice provider is allowed enough time to cure the service levelproblem before the minimum service level is reached and the subscriber'sservice level agreement breached.

FIG. 48 is a flowchart showing a Network Sensing Process 4800 inaccordance with one embodiment of the present invention. The NetworkSensing Process 4800 begins with an element monitoring step 4802. Instep 4802, custom developed element software monitors the individualnetwork elements and generates events based on hardware occurrences,such as switch failures. Typically, the various elements that make upthe hybrid network are very different from one another. Thus, customsoftware is generally needed for each network element or group ofrelated network elements. The custom developed software communicatesdirectly with the hardware and generates events when various occurrencesrelated to the individual hardware happens. For example, when a hardwareelement fails, the related element software senses the failure andgenerates an event indicating the hardware failure and the generalnature of the failure. The events are then routed to an element mangerto processed.

In an event processing step 4804, events generated in step 4802 arefiltered, aggregated, and correlated by an element manager. The elementmanager is where the primary data reduction functions reside. Theelement manager filters, aggregates, and correlates the events tofurther isolate problems within the network. Any information that isdeemed critical to monitor and manage the network is translated intostandard object format in a translation step 4806.

In a translation step 4806, information from step 4804 that is deemedcritical to monitor and manage the network is translated into a standardobject format. Generally, typical operational events are only logged andnot translated into standard object format. However, criticalinformation, such as hardware failure, is translated and forwarded tothe Information Services Manager in an information provisioning step4808.

In an information provisioning step 4808, information from step 4806 isreceived by the Information Services Manager and forwarded to theProactive Threshold Manager. The Information Services Manager providesthe data management and data communications between the element managerand other system components. Generally, the Information Services Manageradheres to CORBA standards to provide universal information access by anobject request broker. The object request broker allows the InformationServices Manager to share management information stored in distributeddatabases. The Proactive Threshold Manager uses the information providedby the Information Services Manger to determine a current level ofservice and compare the current level of services with the minimum levelof service that the service provider can provide without violating SLAs.

Element Management

As discussed above, the element manager works with the InformationServices Manager and the Presentation Manager to assist in themanagement of the hybrid network system. The three components arebriefly described below to provide context for the detailed discussionof the element manager that follows.

Element Manager

-   -   The element manager communicates with the network elements to        receive alarms and alerts through trapping and polling        techniques. The element manager is the layer where the primary        data reduction functions reside. At this layer, events received        at the element manager will be filtered, aggregated and        correlated to further isolate problems within the network.        Information that is deemed critical to monitor and manage the        network is translated into a standard object format and        forwarded to the Information Services Manager. An element        manager can be, but is not necessarily, software which adheres        to open standards such as the Simple Network Management Protocol        (SNMP) and the Object Management Group's (OMG) Common Object        Request Broker Architecture (CORBA).

Information Services Manager

-   -   The information services manager provides the data management        and data communications between element managers and        presentation managers. All information forwarded from the        element managers is utilized by the information services manager        to provide information to the network operators. The information        services manager adheres to CORBA standards to provide        ubiquitous information access via an object request broker        (ORB). The ORB allows the information services manager to share        management information stored in distributed databases.    -   The information services manager stores critical management        information into operational (real-time) and analytical        (historical) distributed databases. These databases provide        common data storage so that new products can be easily inserted        into the management environment. For example, if an event is        received at an element manager that is deemed critical to        display to a network user, the information services manager will        store a copy of the alarm in the operational database and then        forward the alarm to the appropriate network operator.    -   Media and textual databases are also provided by the information        services manager. The databases includes online manuals for        administrative purposes, as well as for the maintenance        specialists to access element specific information. The        databases also provide procedures, policies and computer based        training to network users.    -   The information services manager provides requested information        (real-time and historical) to the network users via the        presentation manager.

Presentation Manager

The presentation manager performs the function its name implies: thepresentation of the information to an end user. Because differentlocations and job functions require access to different types ofinformation, there are at least two types of display methods. The firstis for graphic intensive presentations and the second is for nomadicuse, such as field technicians. The first environment requires a graphicintensive display, such as those provided by X-Windows/MOTIF. The secondenvironment is potentially bandwidth poor where dial-up or wirelessaccess may be used along with more traditional LAN access. This is alsowhere browser technology is employed.

The Element Management Aspect of the present invention works inconjunction with other components of the system, such as FaultManagement, to provide communication between the various networkelements of the system.

FIG. 49 is a flowchart showing an Element Management Process 4900 inaccordance with a preferred embodiment of the present invention. TheElement Management Process 4900 begins with a monitoring step 4902. Instep 4902, the Element Manager monitors the system for events generatedby network elements. Generally, the Element Manager continuouslymonitors the system to translate events for other system components,such as the Fault Management Component.

In an event receiving step 4904, the Element Manager receives eventsfrom various network elements. Preferably the events are provided bycustom software interfaces which communicate directly with networkelements. The software interfaces preferably process the raw networkevents and sort them by context prior to providing the events to theElement Manager.

In a filtering and correlating step 4906, the Element Manager filtersand correlates the events received in step 4904. Preferably thecorrelation is provided by a rules based inference engine. Aftercollecting and correlating the events, the Element Manager performs atranslation step 4908. In step 4908, the events correlated in step 4906are translated into standard object format. Generally a comprehensivelibrary of all message types generated by the hybrid system is utilizedto translate the correlated events into standard object format. Once theevents are translated, they are ready for use by other systemcomponents, such as Fault Management or Billing.

Customer Support Structure

The organization model for customer service support in the NGN networkprovides a single point of contact that is customer focused. This singlepoint of contact provides technical expertise in resolving customerincidents, troubles and requests. Generally a three tiered supportstructure is greatly increases customer satisfaction in service needs.Each tier, or level, possess an increased level of skill, with tasks andresponsibilities distributed accordingly.

FIG. 50 is a flowchart showing a Three Tiered Customer Support Process5000 in accordance with a preferred embodiment of the present invention.The Three Tiered Customer Support Process 5000 begins with a First Tierstep 5002. In step 5002, a customer with a hybrid network problem isprovided access to customer support personnel having a broad set oftechnical skills. The broad set of technical skills allows this group tosolve about 60-70% of all hybrid network problems. If the customersnetwork problem is solved at this stage, the process ends. However, ifthe customers network problem is not solved at this stage, the processcontinues to a Second Tier step 5004.

In the Second Tier step 5004, the customer is provided access totechnical experts and field support personnel who may specialize inspecific areas. The greater specialized nature of this group allows itto solve many problems the group in step 5002 could not solve. Thisgroup is generally responsible for solving 30-40% of all hybrid networkproblems. If the customers network problem is solved at this stage, theprocess ends. However, if the customers network problem is not solved atthis stage, the process continues to a Third Tier step 5006.

In the Third Tier step 5006, the customer is provided access to solutionexperts who are often hardware vendors, software vendors, or customerapplication development and maintenance teems. Customer network problemsthat get this far in the customer support process 5000 need individualspossessing in-depth skills to investigate and resolve the difficultproblems with there area of expertise. Solution experts are the lastresort for solving the most difficult problems. Typically this groupsolves about 5% of all hybrid network problems.

The above model is generally referred to as the Skilled Model becausepersonnel at all three tiers are highly skilled. This model generallycreates a high percentage of calls resolved on the first call. Otherapproaches include a Functional Model, and a Bypass Model. In theFunctional Model users are requested to contact different areasdepending on the nature of the incident. Calls are routed to thecustomer support representative best able to handle the call. This modelcan easily be coupled with the Skill Model above. In the Bypass ModelFirst Tier only logs calls, they do not resolve calls. One advantage ofthis model is that skilled resources don't have to waste time loggingcalls.

In more detail, a customer calling a customer support center inaccordance with one embodiment of the present invention is first asked aseries of questions by an interactive voice response (IVR) system or anlive operator. The customer uses Touch-Tone keys on the telephone torespond to these queries from the IVR, or responds normally to a liveoperator.

When a product support engineer becomes available, the previouslygathered information (both from the IVR query responses and thediagnostic information solicited from the system problem handlers andelement managers) is available to the product support engineer.

After reviewing the situation with the customer, the product supportengineer can query the customer's computer via support agents foradditional information, if necessary.

In systems according to the preferred embodiment, the customer spendsless time interacting with a product support engineer, and is relievedof many of the responsibilities in diagnosing and resolving problems.Automated diagnoses and shorter customer interactions save the productsupport center time, resources, and money. At the same time, thecustomer receives a better diagnosis and resolution of the problem thancould usually be achieved with prior art product support techniques.

In addition, one embodiment of the present invention makes the Interneta viable alternative to telephone calls as a tool for providing consumerproduct support. Many on-line computer services, such as Prodigy andAmerica On-Line, provide, for a fee as a part of their on-line service,software for connecting to and accessing the Internet.

The Internet access software accesses and “handshakes” with an “InternetEntry Server”, which verifies the PIN number, provides the access andtimes the user's access time. The Internet Entry Server is programmed torecognize the PIN number as entitling the user to a limited prepaid or“free” Internet access time for on-line help services. Such a timeperiod could be for a total time period such as 1 hour or more, oraccess to on-line help services can be unlimited for 90 days, 6 months,etc., for example, with the access time paid for by the sponsor/vendor.The first time a customer uses the on-line help service, the InternetEntry Server performs a registration process which includes a number ofpersonal questions and custom data gathering in the form of queriesprovided by the sponsor/vendor for response by the user.

The pertinent answers are then immediately provided to thesponsor/vendor. The Internet Entry Server then “hot-links” the customerto the sponsor/vendor's Internet domain or Home Page for a mandatory“guided tour” where the user is exposed to any current product promotionby the sponsor/vendor and can download promotional coupons, productinformation, etc. After this mandatory guided tour is completed, thecustomer is allowed to enter queries for help in installing or using thesponsor/vendor's product. As an optional promotional service, upontermination of the on-line help session, access to other information onthe Internet can be provided. Once the “free” on-line help service timeor time period is up, the Internet Entry Server prompts the user withone or more of a plurality of options for extending the availability ofon-line help. For example, the user can be prompted to enter a creditcard number to which on-line help charges can be charged; he or she canbe given the opportunity to answer additional survey information inreturn for additional “free” on-line help; or a 900 subscriber paidtelephone access number can be provided through which additional on-linehelp will be billed via the normal telephone company 900 billing cycles.

Integrated IP Telephony User Interface

One embodiment of the present invention allows a user of a webapplication to communicate in an audio fashion in-band without having topick up another telephone. Users can click a button and go to a callcenter through a hybrid network using IP telephony. The system invokesan IP telephony session simultaneously with the data session, and usesan active directory lookup whenever a person uses the system.

FIG. 51 is a flowchart showing an integrated IP telephony process 5100in accordance with a preferred embodiment of the present invention. TheIP telephony process 5100 begins with a transmitting step 5102. In step5102, data is transmitted over the hybrid network during a data session.This data session is typically a normal Internet browsing session, andis generally initiated by a web browser. Utilizing a web browser, usersbegin the data session by performing actions such as searching for websites or downloading data from Internet sites. During the data session,the present invention allows users the option to initiate phone callswithout the need to use another telephone.

In a telephony step 5104, the present invention allows users to initiateand continue telephonic communication. The telephonic is routed by auser action in step 5106, when a user selects a phone number to call.Telephone numbers are typically included in a telephone directoryaccessible on screen by the user. In addition, the directory may includeicons which provide a highly recognizable visual mnemonic to allow usersto easily recall the information included in a particular directoryentry. The present invention utilizes the routing information to directthe call. Since both the original data from the data session and the newIP telephony data use Internet protocol, the present invention canprovide a seamless integration of the two, to provide virtuallysimultaneous telephonic and non-telephonic data communication. Theavailability of packet switching elements in the hybrid networkfacilitate this process.

In packet switching networks, packets in the form of units of data aretransmitted from a source—such as a user terminal, computer, applicationprogram within a computer, or other data handling or data communicationdevice—to a destination, which may be simply another data handling ordata communication device of the same character. The devices themselvestypically are referred to as users, in the context of the network.Blocks or frames of data are transmitted over a link along a pathbetween nodes of the network. Each block consists of a packet togetherwith control information in the form of a header and a trailer which areadded to the packet as it exits the respective node. The headertypically contains, in addition to the destination address field, anumber of subfields such as operation code, source address, sequencenumber, and length code. The trailer is typically a technique forgenerating redundancy checks, such as a cyclic redundancy code fordetecting errors. At the other end of the link, the receiving nodestrips off the control information, performs the requiredsynchronization and error detection, and reinserts the controlinformation onto the departing packet.

Packet switching arose, in part, to fulfill the need for low cost datacommunications in networks developed to allow access to host computers.Special purpose computers designated as communication processors havebeen developed to offload the communication handling tasks which wereformerly required of the host. The communication processor is adapted tointerface with the host and to route packets along the network;consequently, such a processor is often simply called a packet switch.Data concentrators have also been developed to interface with hosts andto route packets along the network. In essence, data concentrators serveto switch a number of lightly used links onto a smaller number of moreheavily used links. They are often used in conjunction with, and aheadof, the packet switch.

In virtual circuit (VC) or connection-oriented transmission,packet-switched data transmission is accomplished via predeterminedend-to-end paths through the network, in which user packets associatedwith a great number of users share link and switch facilities as thepackets travel over the network. The packets may require storage atnodes between transmission links of the network until they may beforwarded along the respective outgoing link for the overall path. Inconnectionless transmission, another mode of packet-switched datatransmission, no initial connection is required for a data path throughthe network. In this mode, individual datagrams carrying a destinationaddress are routed through the network from source to destination viaintermediate nodes, and do not necessarily arrive in the order in whichthey were transmitted.

In a lookup step 5108, the telephonic communication over the hybridnetwork is limited bases on a user profile. Preferably the user profileis included in a rules database. By locating the user profile within therules database, the rules database can provide seamless cross-locationregistration without the need for duplicate databases located ondifferent networks. Using a rules database, a user utilizing theInternet in Europe can get the same telephony service as provided in theUnited States, as described above. Preferably the computer used tointerface with the Internet includes multimedia equipment such asspeakers and a microphone. Utilizing a multimedia equipped computerallows a user to use telephonic communication with little or nodisruption while interfacing with the Internet. Multimedia computerspeakers are used to receive the telephony audio from the network andthe microphone is used to transmit the telephony data to the network.

Data Mining

The present invention includes data mining capability that provides thecapability to analyze network management data looking for patterns andcorrelations across multiple dimensions. The system also constructsmodels of the behavior of the data in order to predict future growth orproblems and facilitate managing the network in a proactive, yetcost-effective manner.

A technique called data mining allows a user to search large databasesand to discover hidden patterns in that data. Data mining is thus theefficient discovery of valuable, non-obvious information from a largecollection of data and centers on the automated discovery of new factsand underlying relationships in the data. The term “data mining” comesfrom the idea that the raw material is the business data, and the datamining algorithm is the excavator, shifting through the vast quantitiesof raw data looking for the valuable nuggets of business information.

Because data can be stored in such a wide variety of formats and becausethe data values can have such a wide variety of meanings, data miningapplications have in the past been written to perform specific datamining operations, and there has been little or no reuse of code betweenapplication programs. Thus, each data mining application is written fromscratch, making the development process long and expensive. Although thenuggets of business information that a data mining application discoverscan be quite valuable, they are of little use if they are expensive anduntimely discovered. Returning to the mining analogy, even if gold isselling for $900 per ounce, nobody is interested in operating a goldmine if it takes two years and $901 per ounce to get it out of theground.

Accurate forecasting relies heavily upon the ability to analyze largeamounts of data. This task is extremely difficult because of the sheerquantity of data involved and the complexity of the analyses that mustbe performed. The problem is exacerbated by the fact that the data oftenresides in multiple databases, each database having different internalfile structures.

Rarely is the relevant information explicitly stored in the databases.Rather, the important information exists only in the hiddenrelationships among items in the databases. Recently, artificialintelligence techniques have been employed to assist users indiscovering these relationships and, in some cases, in automaticallydiscovering the relationships.

FIG. 52 is a flowchart showing a Data Mining Process 5200 in accordancewith a preferred embodiment of the present invention. The Data MiningProcess 5200 begins with an identifying step 5202. In step 5202, thesystem identifies patterns and correlations in the system data over thehybrid communication system. Preferably the system data is analyzedacross multiple dimensions to provide better future system behaviorprediction.

In a model building step 5204, the system builds a model of the networkbehavior based on the patterns and correlations identified in step 5202.Data mining is a process that uses specific techniques to find patternsin data, allowing a user to conduct a relatively broad search of largedatabases for relevant information that may not be explicitly stored inthe databases. Typically, a user initially specifies a search phrase orstrategy and the system then extracts patterns and relationscorresponding to that strategy from the stored data. Such a searchsystem permits searching across multiple databases. The extractedpatterns and relations can be: (1) used by the user, or data analyst, toform a prediction model; (2) used to refine an existing model; and/or(3) organized into a summary of the target database, as in predictingstep 5206.

In a predicting step 5206, the system predicts future behavior of thenetwork based on the model generated in step 5204. There are twoexisting forms of data mining: top-down; and bottom-up. Both forms areseparately available on existing systems. Top-down systems are alsoreferred to as “pattern validation,” “verification-driven data mining”and “confirmatory analysis.” This is a type of analysis that allows ananalyst to express a piece of knowledge, validate or validate thatknowledge, and obtain the reasons for the validation or invalidation.The validation step in a top-down analysis requires that data refutingthe knowledge as well as data supporting the knowledge be considered.Bottom-up systems are also referred to as “data exploration.” Bottom-upsystems discover knowledge, generally in the form of patterns, in data.

Finally, in a managing step 5208, the network is managed based on thefuture behavior of the network. Data mining involves the development oftools that analyze large databases to extract useful information fromthem. As an application of data mining, customer purchasing patterns maybe derived from a large customer transaction database by analyzing itstransaction records. Such purchasing habits can provide invaluablemarketing information. For example, retailers can create more effectivestore displays and more effective control inventory than otherwise wouldbe possible if they know consumer purchase patterns. As a furtherexample, catalog companies can conduct more effective mass mailings ifthey know that, given that a consumer has purchased a first item, thesame consumer can be expected, with some degree of probability, topurchase a particular second item within a defined time period after thefirst purchase.

Classification of the data records to extract useful information is anessential part of data mining. Of importance to the present invention isthe construction of a classifier, from records of known classes, for usein classifying other records whose classes are unknown. As generallyknown in the prior art, a classifier is generated from input data, alsocalled a training set, which consist of multiple records. Each record isidentified with a class label. The input data is analyzed to develop anaccurate description, or model, for each class of the records. Based onthe class descriptions, the classifier can then classify future records,referred to as test data, for which the class labels are unknown.

As an example, consider the case where a credit card company which has alarge database on its card holders and wants to develop a profile foreach customer class that will be used for accepting or rejecting futurecredit applicants. Assuming that the card holders have been divided intotwo classes, good and bad customers, based on their credit history. Theproblem can be solved using classification. First, a training setconsisting of customer data with the assigned classes are provided to aclassifier as input. The output from the classifier is a description ofeach class, i.e., good and bad, which then can be used to process futurecredit card applicants. Similar applications of classification are alsofound in other fields such as target marketing, medical to diagnosis,treatment effectiveness, and store location search.

In data mining applications of classification, very large training setssuch as those having several million examples are common. Thus, it iscritical in these applications to have a classifier that scales well andcan handle training data of this magnitude. As an additional advantage,being able to classify large training data also leads to an improvementin the classification accuracy.

Another desirable characteristic for a data mining classifier is itsshort training time, i.e., the ability to construct the classdescriptions from the training set quickly. As a result, the methods ofthe invention are based on a decision-tree classifier. Decision treesare highly developed techniques for partitioning data samples into a setof covering decision rules. They are compact and have the additionaladvantage that they can be converted into simple classification rules.In addition, they can be easily converted into Structured Query language(SQL) statements used for accessing databases, and achieve comparable orbetter classification accuracy than other classification methods.

Another data mining classifier technique solves the memory constraintproblem and simultaneously improve execution time by partitioning thedata into subsets that fit in the memory and developing classifiers forthe subsets in parallel. The output of the classifiers are then combinedusing various algorithms to obtain the final classification. Thisapproach reduces running time significantly. Another method classifiesdata in batches.

Web Architecture Framework According to One Embodiment of the PresentInvention

The foregoing embodiments of the present invention may be employed inthe generation of an Internet architecture framework like the one shownin FIGS. 53A-53B to support various features such as an electroniccommerce component 5300, a content channels component 5302, anadministrative component 5304, a customer relationship managementcomponent 5306, a content management and publishing services component5308, an education related services component 5310, or a web customerservice component 5312, as shown in FIG. 53A.

The present invention provides a new kind of web architecture framework(called “WAF” in this document) that secures, administers, and auditselectronic information use. WAF also features fundamentally importantcapabilities for managing content that travels “across” the “informationhighway.” These capabilities comprise a rights protection solution thatserves all electronic community members. These members include contentcreators and distributors, financial service providers, end-users, andothers. WAF is the first general purpose, configurable, transactioncontrol/rights protection solution for users of computers, otherelectronic appliances, networks, and the information highway.

The Internet is a method of interconnecting physical networks and a setof conventions for using networks that allow the computers they reach tointeract. Physically, the Internet is a huge, global network spanningover 92 countries and comprising 59,000 academic, commercial,government, and military networks, according to the GovernmentAccounting Office (GAO), with these numbers expected to double eachyear. Furthermore, there are about 10 million host computers, 50 millionusers, and 76,000 World-Wide Web servers connected to the Internet. Thebackbone of the Internet consists of a series of high-speedcommunication links between major supercomputer sites and educationaland research institutions within the U.S. and throughout the world.

Protocols govern the behavior along the Internet backbone and thus setdown the key rules for data communication. Transmission ControlProtocol/Internet Protocol (TCP/IP) has an open nature and is availableto everyone, meaning that it attempts to create a network protocolsystem that is independent of computer or network operating system andarchitectural differences. As such, TCP/IP protocols are publiclyavailable in standards documents, particularly in Requests for Comments(RFCs). A requirement for Internet connection is TCP/IP, which consistsof a large set of data communications protocols, two of which are theTransmission Control Protocol and the Internet Protocol.

The International Telecommunication Union-TelecommunicationStandardization Sector (“ITU-T”) has established numerous standardsgoverning protocols and line encoding for telecommunication devices.Because many of these standards are referenced throughout this document,summaries of the relevant standards are listed below for reference.

-   ITU G.711 Recommendation for Pulse Code Modulation of 3 kHz Audio    Channels.-   ITU G.722 Recommendation for 7 kHz Audio Coding within a 64 kbit/s    channel.-   ITU G.723 Recommendation for dual rate speech coder for multimedia    communication transmitting at 5.3 and 6.3 kbits.-   ITU G.728 Recommendation for coding of speech at 16 kbit/s using    low-delay code excited linear prediction (LD-CELP)-   ITU H.221 Frame Structure for a 64 to 1920 kbit/s Channel m    Audiovisual Teleservices-   ITU H.223 Multiplexing Protocols for Low Bitrate Multimedia    Terminals-   ITU H.225 ITU Recommendation for Media Stream Packetization and    Synchronization on non-guaranteed quality of service LANs.-   ITU H.230 Frame-synchronous Control and Indication Signals for    Audiovisual Systems-   ITU H.231 Multipoint Control Unit for Audiovisual Systems Using    Digital Channels up to 2 Mbit/s-   ITU H.242 System for Establishing Communication Between Audiovisual    Terminals Using Digital Channels up to 2 Mbits-   ITU H.243 System for Establishing Communication Between Three or    More Audiovisual Terminals Using Digital Channels up to 2 Mbit/s-   ITU H.245 Recommendation for a control protocol for multimedia    communication-   ITU H.261 Recommendation for Video Coder-Decoder for audiovisual    services supporting video resolutions of 352×288 pixels and 176×144    pixels.-   ITU H.263 Recommendation for Video Coder-Decoder for audiovisual    services supporting video resolutions of 128×96 pixels, 176×144    pixels, 352×288 pixels, 704×576 pixels and 1408×1152 pixels.-   ITU H.320 Recommendation for Narrow Band ISDN visual telephone    systems.-   ITU H.321 Visual Telephone Terminals over ATM-   ITU H.322 Visual Telephone Terminals over Guaranteed Quality of    Service LANs-   ITU H.323 ITU Recommendation for Visual Telephone Systems and    Equipment for Local Area Networks which provide a non-guaranteed    quality of service.-   ITU H.324 Recommendation for Terminals and Systems for low bitrate    (28.8 Kbps) multimedia communication on dial-up telephone lines.-   ITU T.120 Transmission Protocols for Multimedia Data.

In addition, several other relevant standards exist including:

-   ISDN Integrated Services Digital Network, the digital communication    standard for transmission of voice, video and data on a single    communications link.-   RTP Real-Time Transport Protocol, an Internet Standard Protocol for    transmission of real-time data like voice and video over unicast and    multicast networks.-   IP Internet Protocol, an Internet Standard Protocol for transmission    and delivery of data packets on a packet switched network of    interconnected computer systems.-   PPP Point-to-Point Protocol-   MPEG Motion Pictures Expert Group, a standards body under the    International Standards Organization (ISO), Recommendations for    compression of digital Video and Audio including the bit stream but    not the compression algorithms.-   SLIP Serial Line Internet Protocol-   RSVP Resource Reservation Setup Protocol-   UDP User Datagram Protocol

The popularity of the TCP/IP protocols on the Internet grew rapidlybecause they met an important need for worldwide data communication andhad several important characteristics that allowed them to meet thisneed. These characteristics, still in use today, include:

-   A common addressing scheme that allows any device running TCP/IP to    uniquely address any other device on the Internet.-   Open protocol standards, freely available and developed    independently of any hardware or operating system. Thus, TCP/IP is    capable of being used with different hardware and software, even if    Internet communication is not required.

Independence from any specific physical network hardware, allows TCP/IPto integrate many different kinds of networks. TCP/IP can be used overan Ethernet, a token ring, a dial-up line, or virtually any other kindsof physical transmission media.

An understanding of how information travels in communication systems isrequired to appreciate the recent steps taken by key players in today'sInternet backbone business. The traditional type of communicationnetwork is circuit switched. The U.S. telephone system uses such circuitswitching techniques. When a person or a computer makes a telephonecall, the switching equipment within the telephone system seeks out aphysical path from the originating telephone to the receiver'stelephone. A circuit-switched network attempts to form a dedicatedconnection, or circuit, between these two points by first establishing acircuit from the originating phone through the local switching office,then across trunk lines, to a remote switching office, and finally tothe destination telephone. This dedicated connection exists until thecall terminates.

The establishment of a completed path is a prerequisite to thetransmission of data for circuit switched networks. After the circuit isin place, the microphone captures analog signals, and the signals aretransmitted to the Local Exchange Carrier (LEC) Central Office (CO) inanalog form over an analog loop. The analog signal is not converted todigital form until it reaches the LEC Co, and even then only if theequipment is modem enough to support digital information. In an ISDNembodiment, however, the analog signals are converted to digital at thedevice and transmitted to the LEC as digital information.

Upon connection, the circuit guarantees that the samples can bedelivered and reproduced by maintaining a data path of 64 Kbps (thousandbits per second). This rate is not the rate required to send digitizedvoice per se. Rather, 64 Kbps is the rate required to send voicedigitized with the Pulse Code Modulated (PCM) technique. Many othermethods for digitizing voice exist, including ADPCM (32 Kbps), GSM (13Kbps), TrueSpeech 8.5 (8.5 Kbps), G.723 (6.4 Kbps or 5.3 Kbps) andVoxware RT29HQ (2.9 Kbps). Furthermore, the 64 Kbps path is maintainedfrom LEC Central Office (CO) Switch to LEC CO, but not from end to end.The analog local loop transmits an analog signal, not 64 Kbps digitizedaudio. One of these analog local loops typically exists as the “lastmile” of each of the telephone network circuits to attach the localtelephone of the calling party.

This guarantee of capacity is the strength of circuit-switched networks.However, circuit switching has two significant drawbacks. First, thesetup time can be considerable, because the call signal request may findthe lines busy with other calls; in this event, there is no way to gainconnection until some other connection terminates. Second, utilizationcan be low while costs are high. In other words, the calling party ischarged for the duration of the call and for all of the time even if nodata transmission takes place (i.e. no one speaks). Utilization can below because the time between transmission of signals is unable to beused by any other calls, due to the dedication of the line. Any suchunused bandwidth during the connection is wasted.

Additionally, the entire circuit switching infrastructure is builtaround 64 Kbps circuits. The infrastructure assumes the use of PCMencoding techniques for voice. However, very high quality codecs areavailable that can encode voice using less than one-tenth of thebandwidth of PCM. However, the circuit switched network blindlyallocates 64 Kbps of bandwidth fir a call, end-to-end, even if onlyone-tenth of the bandwidth is utilized. Furthermore, each circuitgenerally only connects two parties. Without the assistance ofconference bridging equipment, an entire circuit to a phone is occupiedin connecting one party to another party. Circuit switching has nomulticast or multipoint communication capabilities, except when used incombination with conference bridging equipment.

Other reasons for long call setup time include the different signalingnetworks involved in call setup and the sheer distance causingpropagation delay. Analog signaling from an end station to a CO on a lowbandwidth link can also delay call setup. Also, the call setup datatravels great distances on signaling networks that are not alwaystransmitting data at the speed of light. When the calls areinternational, the variations in signaling networks grows, the equipmenthandling call setup is usually not as fast as modem setup and thedistances are even greater, so call setup slows down even more. Further,in general, connection-oriented virtual or physical circuit setup, suchas circuit switching, requires more time at connection setup time thancomparable connectionless techniques due to the end-to-end handshakingrequired between the conversing parties.

Message switching is another switching strategy that has beenconsidered. With this form of switching, no physical path is establishedin advance between the sender and receiver; instead, whenever the senderhas a block of data to be sent, it is stored at the first switchingoffice and retransmitted to the next switching point after errorinspection. Message switching places no limit on block size, thusrequiring that switching stations must have disks to buffer long blocksof data; also, a single block may tie up a line for many minutes,rendering message switching useless for interactive traffic.

Packet switched networks, which predominate the computer networkindustry, divide data into small pieces called packets that aremultiplexed onto high capacity intermachine connections. A packet is ablock of data with a strict upper limit on block size that carries withit sufficient identification necessary for delivery to its destination.Such packets usually contain several hundred bytes of data and occupy agiven transmission line for only a few tens of milliseconds. Delivery ofa larger file via packet switching requires that it be broken into manysmall packets and sent one at a time from one machine to the other. Thenetwork hardware delivers these packets to the specified destination,where the software reassembles them into a single file.

Packet switching is used by virtually all computer interconnectionsbecause of its efficiency in data transmissions. Packet switchednetworks use bandwidth on a circuit as needed, allowing othertransmissions to pass through the lines in the interim. Furthermore,throughput is increased by the fact that a router or switching officecan quickly forward to the next stop any given packet, or portion of alarge file, that it receives, long before the other packets of the filehave arrived. In message switching, the intermediate router would haveto wait until the entire block was delivered before forwarding. Today,message switching is no longer used in computer networks because of thesuperiority of packet switching.

To better understand the Internet, a comparison to the telephone systemis helpful. The public switched telephone network was designed with thegoal of transmitting human voice, in a more or less recognizable form.Their suitability has been improved for computer-to-computercommunications but remains far from optimal. A cable running between twocomputers can transfer data at speeds in the hundreds of megabits, andeven gigabits per second. A poor error rate at these speeds would beonly one error per day. In contrast, a dial-up line, using standardtelephone lines, has a maximum data rate in the thousands of bits persecond, and a much higher error rate. In fact, the combined bit ratetimes error rate performance of a local cable could be 11 orders ofmagnitude better than a voice-grade telephone line. New technology,however, has been improving the performance of these lines.

The Internet is composed of a great number of individual networks,together forming a global connection of thousands of computer systems.After understanding that machines are connected to the individualnetworks, we can investigate how the networks are connected together toform an internetwork, or an internet. At this point, internet gatewaysand internet routers come into play.

In terms of architecture, two given networks are connected by a computerthat attaches to both of them. Internet gateways and routers providethose links necessary to send packets between networks and thus makeconnections possible. Without these links, data communication throughthe Internet would not be possible, as the information either would notreach its destination or would be incomprehensible upon arrival. Agateway may be thought of as an entrance to a communications networkthat performs code and protocol conversion between two otherwiseincompatible networks. For instance, gateways transfer electronic mailand data files between networks over the internet.

IP Routers are also computers that connect networks and is a newer termpreferred by vendors. These routers must make decisions as to how tosend the data packets it receives to its destination through the use ofcontinually updated routing tables. By analyzing the destination networkaddress of the packets, routers make these decisions. Importantly, arouter does not generally need to decide which host or end user willreceive a packet; instead, a router seeks only the destination networkand thus keeps track of information sufficient to get to the appropriatenetwork, not necessarily the appropriate end user. Therefore, routers donot need to be huge supercomputing systems and are often just machineswith small main memories and little disk storage. The distinctionbetween gateways and routers is slight, and current usage blurs the lineto the extent that the two terms are often used interchangeably. Incurrent terminology, a gateway moves data between different protocolsand a router moves data between different networks. So a system thatmoves mail between TCP/IP and OSI is a gateway, but a traditional IPgateway (that connects different networks) is a router.

Now, it is useful to take a simplified look at routing in traditionaltelephone systems. The telephone system is organized as a highlyredundant, multilevel hierarchy. Each telephone has two copper wirescoming out of it that go directly to the telephone company's nearest endoffice, also called a local central office. The distance is typicallyless than 10 kin; in the U.S. alone, there are approximately 20,000 endoffices. The concatenation of the area code and the first three digitsof the telephone number uniquely specify an end office and help dictatethe rate and billing structure.

The two-wire connections between each subscriber's telephone and the endoffice are called local loops. If a subscriber attached to a given endoffice calls another subscriber attached to the same end office, theswitching mechanism within the office sets up a direct electricalconnection between the two local loops. This connection remains intactfor the duration of the call, due to the circuit switching techniquesdiscussed earlier.

If the subscriber attached to a given end office calls a user attachedto a different end office, more work has to be done in the routing ofthe call. First, each end office has a number of outgoing lines to oneor more nearby switching centers, called toll offices. These lines arecalled toll connecting trunks. If both the caller's and the receiver'send offices happen to have a toll connecting trunk to the same tolloffice, the connection may be established within the toll office. If thecaller and the recipient of the call do not share a toll office, thenthe path will have to be established somewhere higher up in thehierarchy. There are sectional and regional offices that form a networkby which the toll offices are connected. The toll, sectional, andregional exchanges communicate with each other via high bandwidthinter-toll trunks. The number of different kinds of switching centersand their specific topology varies from country to country, depending onits telephone density.

Using Network Level Communication for Smooth User Connection

In addition to the data transfer functionality of the Internet, TCP/IPalso seeks to convince users that the Internet is a solitary, virtualnetwork. TCP/IP accomplishes this by providing a universalinterconnection among machines, independent of the specific networks towhich hosts and end users attach. Besides router interconnection ofphysical networks, software is required on each host to allowapplication programs to use the Internet as if it were a single, realphysical network.

The basis of Internet service is an underlying, connectionless packetdelivery system run by routers, with the basic unit of transfer beingthe packet. In internets running TCP/IP, such as the Internet backbone,these packets are called datagrams. This section will briefly discusshow these datagrams are routed through the Internet.

In packet switching systems, routing is the process of choosing a pathover which to send packets. As mentioned before, routers are thecomputers that make such choices. For the routing of information fromone host within a network to another host on the same network, thedatagrams that are sent do not actually reach the Internet backbone.This is an example of internal routing, which is completelyself-contained within the network. The machines outside of the networkdo not participate in these internal routing decisions.

At this stage, a distinction should be made between direct delivery andindirect delivery. Direct delivery is the transmission of a datagramfrom one machine across a single physical network to another machine onthe same physical network. Such deliveries do not involve routers.Instead, the sender encapsulates the datagram in a physical frame,addresses it, and then sends the frame directly to the destinationmachine.

Indirect delivery is necessary when more than one physical network isinvolved, in particular when a machine on one network wishes tocommunicate with a machine on another network. This type ofcommunication is what we think of when we speak of routing informationacross the Internet backbone. In indirect delivery, routers arerequired. To send a datagram, the sender must identify a router to whichthe datagram can be sent, and the router then forwards the datagramtowards the destination network. Recall that routers generally do notkeep track of the individual host addresses (of which there aremillions), but rather just keeps track of physical networks (of whichthere are thousands). Essentially, routers in the Internet form acooperative, interconnected structure, and datagrams pass from router torouter across the backbone until they reach a router that can deliverthe datagram directly.

The changing face of the internet world causes a steady inflow of newsystems and technology. The following three developments, each likely tobecome more prevalent in the near future, serve as an introduction tothe technological arena.

Asynchronous Transfer Mode (ATM) is a networking technology using ahigh-speed, connection-oriented system for both local area and wide areanetworks. ATM networks require modem hardware including:

-   High speed switches that can operate at gigabit (trillion bit) per    second speeds to handle the traffic from many computers.-   Optical fibers (versus copper wires) that provide high data transfer    rates, with host-to-ATM switch connections running at 100 or 155    Mbps (million bits per second).-   3) Fixed size cells, each of which includes 53 bytes.

ATM incorporates features of both packet switching and circuitswitching, as it is designed to carry voice, video, and televisionsignals in addition to data. Pure packet switching technology is notconducive to carrying voice transmissions because such transfers demandmore stable bandwidth.

Frame relay systems use packet switching techniques, but are moreefficient than traditional systems. This efficiency is partly due to thefact that they perform less error checking than traditional X.25packet-switching services. In fact, many intermediate nodes do little orno error checking at all and only deal with routing, leaving the errorchecking to the higher layers of the system. With the greaterreliability of today's transmissions, much of the error checkingpreviously performed has become unnecessary. Thus, frame relay offersincreased performance compared to traditional systems.

An Integrated Services Digital Network is an “internationaltelecommunications standard for transmitting voice, video, and data overdigital lines,” most commonly running at 64 kilobits per second. Thetraditional phone network runs voice at only 4 kilobits per second. Toadopt ISDN, an end user or company must upgrade to ISDN terminalequipment, central office hardware, and central office software. Theostensible goals of ISDN include the following:

-   1) To provide an internationally accepted standard for voice, data    and signaling;-   2) To make all transmission circuits end-to-end digital;-   3) To adopt a standard out-of-band signaling system; and-   4) To bring significantly more bandwidth to the desktop.

An ISP is composed of several disparate systems. As ISP integrationproceeds, formerly independent systems now become part of one largerwhole with concomitant increases in the level of analysis, testing,scheduling, and training in all disciplines of the ISP.

ATM (asynchronous transfer mode) pushes network control to the peripheryof the network, obviating the trunk and switching models of traditional,circuit-based telephony. It is expected to be deployed widely toaccommodate these high bandwidth services.

WAF supports a general purpose foundation for secure transactionmanagement, including usage control, auditing, reporting, and/orpayment. This general purpose foundation is called “WAF Functions”(“WAFFs”). WAF also supports a collection of “atomic” applicationelements (e.g., load modules) that can be selectively aggregatedtogether to form various WAFF capabilities called control methods andwhich serve as WAFF applications and operating system functions. When ahost operating environment of an electronic appliance includes WAFFcapabilities, it is called a “Rights Operating System” (ROS). WAFF loadmodules, associated data, and methods form a body of information thatfor the purposes of the present invention are Jo called “controlinformation.” WAFF control information may be specifically associatedwith one or more pieces of electronic content and/or it may be employedas a general component of the operating system capabilities of a WAFinstallation.

WAFF transaction control elements reflect and enact content specificand/or more generalized administrative (for example, general operatingsystem) control information. WAFF capabilities which can generally takethe form of applications (application models) that have more or lessconfigurability which can be shaped by WAF participants, through theuse, for example, of WAF templates, to employ specific capabilities,along, for example, with capability parameter data to reflect theelements of one or more express electronic agreements between WAFparticipants in regards to the use of electronic content such ascommercially distributed products. These control capabilities manage theuse of, and/or auditing of use of, electronic content, as well asreporting information based upon content use, and any payment for saiduse. WAFF capabilities may “evolve” to reflect the requirements of oneor more successive parties who receive or otherwise contribute to agiven set of control information. Frequently, for a WAF application fora given content model (such as distribution of entertainment on CD-ROM,content delivery from an Internet repository, or electronic catalogshopping and advertising, or some combination of the above) participantswould be able to securely select from amongst available, alternativecontrol methods and apply related parameter data, wherein such selectionof control method and/or submission of data would constitute their“contribution” of control information. Alternatively, or in addition,certain control methods that have been expressly certified as securelyinteroperable and compatible with said application may be independentlysubmitted by a participant as part of such a contribution. In the mostgeneral example, a generally certified load module (certified for agiven WAF arrangement and/or content class) may be used with many or anyWAF application that operates in nodes of said arrangement. Theseparties, to the extent they are allowed, can independently and securelyadd, delete, and/or otherwise modify the specification of load modulesand methods, as well as add, delete or otherwise modify relatedinformation.

Normally the party who creates a WAF content container defines thegeneral nature of the WAFF capabilities that will and/or may apply tocertain electronic information. A WAF content container is an objectthat contains both content (for example, commercially distributedelectronic information products such as computer software programs,movies, electronic publications or reference materials, etc.) andcertain control information related to the use of the object's content.A creating party may make a WAF container available to other parties.Control information delivered by, and/or otherwise available for usewith WAF content containers comprise (for commercial contentdistribution purposes) WAFF control capabilities (and any associatedparameter data) for electronic content. These capabilities mayconstitute one or more “proposed” electronic agreements (and/oragreement functions available for selection and/or use with parameterdata) that manage the use and/or the consequences of use of such contentand which can enact the terms and conditions of agreements involvingmultiple parties and their various rights and obligations.

A WAF electronic agreement may be explicit, through a user interfaceacceptance by one or more parties, for example by a “junior” party whohas received control information from a “senior” party, or it may be aprocess amongst equal parties who individually assert their agreement.Agreement may also result from an automated electronic process duringwhich terms and conditions are “evaluated” by certain WAF participantcontrol information that assesses whether certain other electronic termsand conditions attached to content and/or submitted by another party areacceptable (do not violate acceptable control information criteria).Such an evaluation process may be quite simple, for example a comparisonto ensure compatibility between a portion of, or all senior, controlterms and conditions in a table of terms and conditions and thesubmitted control information of a subsequent participant in a pathwayof content control information handling, or it may be a more elaborateprocess that evaluates the potential outcome of, and/or implements anegotiation process between, two or more sets of control informationsubmitted by two or more parties. WAF also accommodates a semi-automatedprocess during which one or more WAF participants directly, through userinterface means, resolve “disagreements” between control informationsets by accepting and/or proposing certain control information that maybe acceptable to control information representing one or more otherparties interests and/or responds to certain user interface queries forselection of certain alternative choices and/or for certain parameterinformation, the responses being adopted if acceptable to applicablesenior control information.

When another party (other than the first applier of rules), perhapsthrough a negotiation process, accepts, and/or adds to and/or otherwisemodifies, “in place” content control information, a WAF agreementbetween two or more parties related to the use of such electroniccontent may be created (so long as any modifications are consistent withsenior control information). Acceptance of terms and conditions relatedto certain electronic content may be direct and express, or it may beimplicit as a result of use of content (depending, for example, on legalrequirements, previous exposure to such terms and conditions, andrequirements of in place control information).

WAFF capabilities may be employed, and a WAF agreement may be enteredinto, by a plurality of parties without the WAFF capabilities beingdirectly associated with the controlling of certain, specific electronicinformation. For example, certain one or more WAFF capabilities may bepresent at a WAF installation, and certain WAF agreements may have beenentered into during the registration process for a content distributionapplication, to be used by such installation for securely controllingWAF content usage, auditing, reporting and/or payment. Similarly, aspecific WAF participant may enter into a WAF user agreement with a WAFcontent or electronic appliance provider when the user and/or herappliance register with such provider as a WAF installation and/or user.In such events, WAFF in place control information available to the userWAF installation may require that certain WAFF methods are employed, forexample in a certain sequence, in order to be able to use all and/orcertain classes, of electronic content and/or WAF applications. WAFensures that certain prerequisites necessary for a given transaction tooccur are met. This includes the secure execution of any required loadmodules and the availability of any required, associated data. Forexample, required load modules and data (e.g. in the form of a method)might specify that sufficient credit from an authorized source must beconfirmed as available. It might further require certain one or moreload modules execute as processes at an appropriate time to ensure thatsuch credit will be used in order to pay for user use of the content. Acertain content provider might, for example, require metering the numberof copies made for distribution to employees of a given software program(a portion of the program might be maintained in encrypted form andrequire the presence of a WAF installation to run). This would requirethe execution of a metering method for copying of the property each timea copy was made for another employee. This same provider might alsocharge fees based on the total number of different properties licensedfrom them by the user and a metering history of their licensing ofproperties might be required to maintain this information.

Commerce-Related Web Application Services

One embodiment of the present invention, as shown in FIG. 54, isprovided for affording a combination of commerce-related web applicationservices. Various features are included such as allowing purchase ofproducts and services via a displayed catalog in operation 5400. As anoption, a virtual shopping cart environment may be provided. Further, inoperations 5402 and 5404, data. i.e. specifications, details, etc.,relating to the products and services are displayed along with acomparison between different products and services. Data relating toneeds of a user may also be received for the purpose of outputting arecommendation of the products and services based on the inputted needs.See operation 5406. Optionally, features of the products and servicesmay be selected in operation 5408 based on user profile in order toconfigure a specifically tailored product or service. Alternatively,features of the products and services may be listed in order to allowthe user to configure a specifically tailored product or service.Operation 5410 allows one or more of the products or services to beadvertised. Yet another aspect of the present invention includesoutputting an estimate relating to a price and/or availability of theproducts and services. Note operation 5412. Further, in operations 5414and 5416, an order for the products and services may be received andprocessed, after which a tax and a shipping fee are calculated. A statusof delivery for one or more of the ordered products and services may beprovided in operation 5418.

Optionally, the displayed catalog may be customized based upon the userprofile. Further, the data relating to at least one of the products andservices may include a link to related data. The comparison betweendifferent products and services could include a comparison to acompetitor's product. Alternatively, the comparison between differentproducts and services could include identification of at least one toadvantage of the at least one of products and services. Optionally, therecommendation of at least one of the products and services includes afinancial analysis of at least one of the products and services. Thefeatures of at least one of the products and services may be generatedby a product configuration. The advertising could include customizedadvertising based upon the user profile. The step of calculating atleast one of the tax and the shipping fee may further includecalculating a plurality of taxes and shipping fees applicable tointernational transactions. These and other options will be discussed inmore detail below.

Through use of WAF's control system, traditional content providers andusers can create electronic relationships that reflect traditional,non-electronic relationships. They can shape and modify commercialrelationships to accommodate the evolving needs of, and agreementsamong, themselves WAF does not require electronic content providers andusers to modify their business practices and personal preferences toconform to a metering and control application program that supportslimited, largely fixed functionality. Furthermore, WAF permitsparticipants to develop business models not feasible with non-electroniccommerce, for example, involving detailed reporting of content usageinformation, large numbers of distinct transactions at hithertoinfeasibly low price points, “pass-along” control information that isenforced without involvement or advance knowledge of the participants,etc.

The present invention allows content providers and users to formulatetheir transaction environment to accommodate:

-   (1) desired content models, content control models, and content    usage information pathways,-   (2) a complete range of electronic media and distribution means,-   (3) a broad range of pricing, payment, and auditing strategies,-   (4) very flexible privacy and/or reporting models,-   (5) practical and effective security architectures, and-   (6) other administrative procedures that together with steps (1)    through (5) can enable most “real world” electronic commerce and    data security models, including models unique to the electronic    world.

WAF's transaction management capabilities can enforce:

-   (1) privacy rights of users related to information regarding their    usage of electronic information and/or appliances,-   (2) societal policy such as laws that protect rights of content    users or require the collection of taxes derived from electronic    transaction revenue, and-   (3) the proprietary and/or other rights of parties related to    ownership of, distribution of, and/or other commercial rights    related to, electronic information.

WAF can support “real” commerce in an electronic form, that is theprogressive creation of commercial relationships that form, over time, anetwork of interrelated agreements representing a value chain businessmodel. This is achieved in part by enabling content control informationto develop through the interaction of (negotiation between) securelycreated and independently submitted sets of content and/or appliancecontrol information. Different sets of content and/or appliance controlinformation can be submitted by different parties in an electronicbusiness value chain enabled by the present invention. These partiescreate control information sets through the use of their respective WAFinstallations. Independently, securely deliverable, component basedcontrol information allows efficient interaction among controlinformation sets supplied by different parties.

WAF permits multiple, separate electronic arrangements to be formedbetween subsets of parties in a WAF supported electronic value chainmodel. These multiple agreements together comprise a WAF value chain“extende” agreement. WAF allows such constituent electronic agreements,and therefore overall WAF extended agreement, to evolve and reshape overtime as additional WAF participants become involved in WAF contentand/or appliance control information handling. WAF electronic agreementsmay also be extended as new control information is submitted by existingparticipants. With WAF, electronic commerce participants are free tostructure and restructure their electronic commerce business activitiesand relationships. As a result, the present invention allows acompetitive electronic commerce marketplace to develop since the use ofWAF enables different, widely varying business models using the same orshared content.

A significant facet of the present invention's ability to broadlysupport electronic commerce is its ability to securely manageindependently delivered WAF component objects containing controlinformation (normally in the form of WAF objects containing one or moremethods, data, or load module WAF components). This independentlydelivered control information can be integrated with senior and otherpre-existing content control information to securely form derivedcontrol information using the negotiation mechanisms of the presentinvention. All requirements specified by this derived controlinformation must be satisfied before WAF controlled content can beaccessed or otherwise used. This means that, for example, all loadmodules and any mediating data which are listed by the derived controlinformation as required must be available and securely perform theirrequired function. In combination with other aspects of the presentinvention, securely, independently delivered control components allowelectronic commerce participants to freely stipulate their businessrequirements and trade offs. As a result, much as with traditional,non-electronic commerce, the present invention allows electroniccommerce (through a progressive stipulation of various controlrequirements by WAF participants) to evolve into forms of business thatare the most efficient, competitive and useful. WAF providescapabilities that rationalize the support of electronic commerce andelectronic transaction management. This rationalization stems from thereusability of control structures and user interfaces for a widevariety, of transaction management related activities. As a result,content usage control, data security, information auditing, andelectronic financial activities, can be supported with tools that arereusable, convenient, consistent, and familiar. In addition, a rationalapproach—a transaction/distribution control standard—allows allparticipants in WAF the same foundation set of hardware control andsecurity, authoring, administration, and management tools to supportwidely varying types of information, business market model, and/orpersonal objectives.

Employing WAF as a general purpose electronic transaction/distributioncontrol system allows users to maintain a single transaction managementcontrol arrangement on each of their computers, networks, communicationnodes, and/or other electronic appliances. Such a general purpose systemcan serve the needs of many electronic transaction managementapplications without requiring distinct, different installations fordifferent purposes. As a result, users of WAF can avoid the confusionand expense and other inefficiencies of different, limited purposetransaction control applications for each different content and/orbusiness model. For example, WAF allows content creators to use the sameWAF foundation control arrangement for both content authoring and forlicensing content from other content creators for inclusion into theirproducts or for other use. Clearinghouses, distributors, contentcreators, and other WAF users can all interact, both with theapplications running on their WAF installations, and with each other, inan entirely consistent manner, using and reusing (largely transparently)the same distributed tools, mechanisms, and consistent user interfaces,regardless of the type of WAF activity.

WAF participants in a commercial value chain can be “commercially”confident (that is, sufficiently confident for commercial purposes) thatthe direct (constituent) and/or “extended” electronic agreements theyentered into through the use of WAF can be enforced reliably. Theseagreements may have both “dynamic” transaction management relatedaspects, such as content usage control information enforced throughbudgeting, metering, and/or reporting of electronic information and/orappliance use, and/or they may include “static” electronic assertions,such as an end-user using the system to assert his or her agreement topay for services, not to pass to unauthorized parties electronicinformation derived from usage of content or systems, and/or agreeing toobserve copyright laws. Not only can electronically reported transactionrelated information be trusted under the present invention, but paymentmay be automated by the passing of payment tokens through a pathway ofpayment (which may or may not be the same as a pathway for reporting).Such payment can be contained within a WAF container createdautomatically by a WAF installation in response to control information(located, in the preferred embodiment, in one or more permissionsrecords) stipulating the “withdrawal” of credit or electronic currency(such as tokens) from an electronic account (for example, an accountsecurely maintained by a user's WAF installation secure subsystem) basedupon usage of WAF controlled electronic content and/or appliances (suchas governments, financial credit providers, and users).

WAF allows the needs of electronic commerce participants to be servedand it can bind such participants together in a universe wide, trustedcommercial network that can be secure enough to support very largeamounts of commerce. WAF's security and metering secure subsystem corewill be present at all physical locations where WAF related content is(a) assigned usage related control information (rules and mediatingdata), and/or (b) used. This core can perform security and auditingfunctions (including metering) that operate within a “virtual blackbox,” a collection of distributed, very secure WAF related hardwareinstances that are interconnected by secured information exchange (forexample, telecommunication) processes and distributed database means.WAF further includes highly configurable transaction operating systemtechnology, one or more associated libraries of load modules along withaffiliated data, WAF related administration, data preparation, andanalysis applications, as well as system software designed to enable WAFintegration into host environments and applications. WAF's usage controlinformation, for example, provide for property content and/or appliancerelated: usage authorization, usage auditing (which may include auditreduction), usage billing, usage payment, privacy filtering, reporting,and security related communication and encryption techniques.

WAF's fundamental configurability will allow a broad range ofcompetitive electronic commerce business models to flourish. It allowsbusiness models to be shaped to maximize revenues sources, end-userproduct value, and operating efficiencies. WAF can be employed tosupport multiple, differing models, take advantage of new revenueopportunities, and deliver product configurations most desired by users.

Electronic commerce technologies that do not, as the present inventiondoes:

-   support a broad range of possible, complementary revenue activities,-   offer a flexible array of content usage features most desired by    customers, and-   exploit opportunities for operating efficiencies,    will result in products that are often intrinsically more costly and    less appealing and therefore less competitive m the marketplace.

Some of the key factors contributing to the configurability intrinsic tothe present invention include:

-   (a) integration into the fundamental control environment of a broad    range of electronic appliances through portable API and programming    language tools that efficiently support merging of control and    auditing capabilities in nearly any electronic appliance environment    while maintaining overall system security;-   (b) modular data structures;-   (c) generic content model;-   (d) general modularity and independence of foundation architectural    components;-   (e) modular security structures;-   (f) variable length and multiple branching chains of control; and-   (g) independent, modular control structures in the form of    executable load modules that can be maintained in one or more    libraries, and assembled into control methods and models, and where    such model control schemes can “evolve” as control information    passes through the WAF installations of participants of a pathway of    WAF content control information handling.    Catalog Capabilities-   Displays linkable pictures and text-   Customizes rendering based on user preferences-   Provides multiple ways to traverse the catalog (ease of navigation)-   Shows Quick-buy link throughout catalog-   Incorporates multiple languages and localized content-   Integrates to centralized publishing for fresh content-   Displays guest view of catalog (default set)-   Creates personal catalog

Referring to operation 5400 of FIG. 54, one embodiment of the electroniccommerce component of the present invention is provided for allowingpurchase of products and services via a display catalog. The displaycatalog may display linkable pictures, such as visual representations ofproducts for sale. The display catalog may also display linkable textwhich could represent a product or family of products, as well asservices offered. Other linkable text or pictures could be implementedto provide multiple ways to traverse the display catalog to easenavigation along a page or between various pages. An exemplary linkwould include at least one textual or picture link displayed on eachpage of the display catalog that would permit a user to purchase thegood or service shown on that page or associated with a particular goodor service displayed on the page. Such link may resemble a shoppingcart.

Preferably, the default setting of the display catalog would be preset,but the display format of the display catalog would be customizablebased on user preference or automatically based on user profile. Forexample, the user may be permitted to customize the format of thedisplay catalog for his or her particular session, or the customizationsmay be saved so that the user's personalized settings are used each timethe display catalog is opened by that particular user. The displayformat may also be customized to display localized content, such as bybeing based on the location of the user. Text may also be displayed in alanguage selected by the viewer.

Product Details and Specifications

-   Links to all related documentation (datasheets, whitepapers)-   Drills-down for additional detail-   Integrates to centralized publishing for integrity-   Downloads information-   Tracks downloads for proactive notification (spec updates)

As shown in FIG. 54, operation 5402 outputs data relating to at leastone of the products and services. Such data may include details of theproducts or services as well as specifications. The data and comparisonsmay be accessed through linking of pages containing the data withlinkable pictures and text. For example, a more detailed picture of aparticular product illustrating its most salient features may be linkedto a smaller or more generic picture of the product on a page displayingvarious similar products. More links may be used on the page displayingthe data to obtain additional detail.

Optionally, the data may be integrated to centralized publishing forintegrity. In such case, updated data would be downloaded to ensure thecorrectness and currentness of the information. A proactive notificationcould also be made near the time of download, such as when updates to aspecification are sent or received.

Shopping Cart

-   Stores items selected throughout shopping experience-   Saves shopping carts to be retrieved at later point-   Displays quantity, price, shipping info, total price-   Modifies order information (add quantities, delete items)-   Incorporates multiple language and currency-   Accessible easily throughout catalog

As shown in FIG. 55, one embodiment of the electronic commerce componentof the present invention is provided for facilitating a virtual shoppingtransaction First, a plurality of items, i.e. products or services, areselected from a database and displayed for purchase in operation 5500.Preferably, the items are displayed in an electronic catalog format.Next, in operation 5502, a user is allowed to select a predetermined setof the items for purchase. For example, each of the items could includea liked picture or text, which a user would then simply click on with amouse pointer to select the items. Other options include scrollablemenus, etc. In operation 5504, a payment is then accepted in exchangefor the predetermined set of items. Such predetermined set of items isthen stored in operation 5506, thereby allowing the user to collectivelyselect the predetermined set of items at a later time without having toselect each of the items individually. Note operation 5508. The selecteditems are preferably stored in a database unique to the user. The set ofitems selected during each shopping session should be stored in aseparate listing or file so that the user can individually selectparticular sets of items. Optionally, the user may be allowed to nameeach stored set of items for easier identification later. The user mayalso be permitted to rate or rank the items of a selected set forpurposes of refreshing the user's memory when the user later retrievesthe set.

Ideally, a quantity and a price of each of the items that is selected isdisplayed during use of the present invention. Also displayed is a totalprice of the items that are selected along with shipping information.During use, the user is allowed to modify the predetermined set of itemsthat are selected. Further, several sets of items may be separatelystored for later review and modification. Retrieval of the set or setsof items should be easily accessible throughout the display catalog,such as through links.

Optionally, multiple languages may be incorporated into the presentinvention and payment for the predetermined set of items may be acceptedin any one of a plurality of currencies such as electronic and foreign.

Recently, an online shopping system which allows examination, selectionand order of items through a computer has been put into practice. Insuch an online shopping system, in order to supplement a disadvantage bya gap from ordinary shopping caused by the use of electronic means suchas not capable of directly touching the item and not capable of gettingassistance of a real salesman, various devices for a user interface havebeen made. As one of such devices, a so-called shopping basket functionwhich has some analogy with shopping basket used in a shop such assupermarket is proposed. In this function, items on the online shoppingare temporarily added to a purchase list and a process of order andpurchase is conducted when all items to be purchased are registered onthe list, as items to be purchased in the supermarket are once put intoa shopping basket and lastly the account is settled at a counter. Inthis manner, by preparing the purchase list to order a plurality ofitems one time, a time required to purchase may be substantially saved.Further, the consumer may prevent the failure of shopping and stop thepurchase of unnecessary items by checking the list once before thepurchase. Further, because of feel of easiness that the items once addedon the purchase list may be finally changed in any way before thepurchase, there is a psychological effect that the consumer may proceedshopping readily.

The elements which constitute the shopping basket are a shopping basketmain body (purchase list) and a function for taking in and out items forthe shopping basket. As functions associated with the shopping basket,there are a function to take the items into the shopping basket (add tothe purchase list), a function to check the contents of the shoppingbasket (display the purchase list), a function to return the item in theshopping basket (change the purchase list) and a function to purchasethe items in the shopping basket. However, for the function to purchasethe items, only the order is accepted because the delivery of the itemsis made later except a portion of items which can be downloaded asdigital data and the shopping is not completed until the items arereceived and the account is settled.

As one of methods for proving the shopping basket to the consumer, thereis a method of displaying a button for the shopping basket on the samedisplay page as a catalog which the consumer watches as it is realizedin the online shopping system mainly on the World Wide Web. As anothermethod of proving the shopping basket, there is a method for separatelydisplaying an item catalog area and a shopping basket area. Such afunction is used in the shopping system provided by a CD-ROM.

A main stage of the online shopping is an item catalog screen on whichinformation on the items is provided. The consumer examines the item onthe screen and if he or she likes it, he or she takes it into theshopping basket. During the shopping, he or she examines the content ofthe shopping basket as required to check the item scheduled to purchaseand the pay amount of the items. Accordingly, it is not necessary toalways display the purchase list on the screen, but the functions toaccess to the shopping basket for taking in the items and to display thecontents should be available to the consumer any time during theshopping.

As described above, when the button for the shopping basket is on thesame page as the item catalog, the entire length of the page changesdepending on the amount of item data described on the catalog, the pagemay not be accommodated on the display screen. In such a case, it isnecessary for the consumer to scroll the page to press the button todisplay the button for the shopping basket in order to display thebutton. The same is true when the button is located at the top end ofthe page, and when the item of interest is at a lower portion of thepage, the screen must be scrolled upward in order to take the item intothe shopping basket after the confirmation. The state in which thenecessary function is not displayed without scrolling not only imposes aburden to the operation of scroll, and when the consumer first uses thesystem, the operation to be conducted next is hard to understand andcause anxiety to the user. On the other hand, in the method of alwaysdisplaying the button in a specified area by dividing the screen, theabove problem is solved.

Further, as a feature of an application on the Internet such as theWorld Wide Web, high freedom of both information provider and user ispointed out. For example, the user cannot previously limit the length ofone page of the contents prepared by the information provider. Theenvironment of the user such as a resolution of the display, a type ofbrowser software used and the setting of font varies from user to userand the information provider cannot know it. As a result, however theinformation provider devises the amount of information and the layoutdescribed on the page to accommodate it in the screen, the intendedeffect is not always achieved depending on the environment of the user.In the method of placing the button for the shopping basket on the samepage as the catalog, some degree of scrolling is unavoidable. On theother hand, the method of dividing the screen and sharing the roles bythe respective sub-areas restricts the method for preparing thecontents. It may be good that the user interface is uniform in oneonline shop but when it is applied across a plurality of online shops ofvarious items and scales, free design cannot be conducted. This forcesto the user a specific environment such as to watch the window of thebrowser at a specified size and hence it does not conform to theInternet.

In accordance with the present invention, an interface for providing theshopping basket function is provided as a separate shopping basketwindow from a catalog window on which online shop item data isdisplayed. The shopping basket window is displayed on the catalog windowand a display position is moved in linkage with the movement of a mousepointer. The shopping basket includes a list of items to be purchasedwhich is a main body of the shopping basket, a function to add the itemdata to the list, and a function to change the item data registered inthe list. In one embodiment of the present invention, the shoppingbasket main body is not always displayed. Instead, an interface functionto display the shopping basket contents on the screen is provided on theshopping basket window.

Compare Products and Services

-   Compares your products and services to competitors-   Highlights advantages in across your products and services

One embodiment of the present invention provides for comparison shoppingby utilizing the customer's profile to prioritize the features of agroup of similar, competing products, as shown in operation 5404 of FIG.54. The competing products may or may not have been manufactured bycompeting business entities. More detail is provided in FIG. 56. First,in operation 5600, a customer's profile is developed. This profile maybe developed from many sources including customer input, customer buyinghabits, customer income level, customer searching habits, customerprofession, customer education level, customer's purpose of the pendingsale, customer's shopping habits, etc. Such information may be inputdirectly by the user, captured as a user uses the network, and may bedownloaded periodically from a user's system. Next, in operation 5601, aplurality of items for purchase are displayed, from which the customeris allowed to select multiple, similar items, i.e. products or servicesto compare in operation 5602. Then, after a set of features of each itemis determined in operation 5603, operation 5604 creates a hierarchy ofthe features of the items selected in accordance with the customer'sprofile. For example, as shown in FIG. 57, a comparison of featuresbased on keywords taken from the customer's profile may be performed inoperation 5701. The features would be preassociated with featurekeywords in operation 5700. When a keyword input by the user matches afeature keyword, the feature is given priority in operation 5702.Features with feature keywords having multiple matches are given highestpriority and ranked according to the number of matches in operation5703. If no keywords match, the user's words could be analyzed using athesaurus to find keyword matches, but these would be given lowerpriority in operation 5704. Then, in operation 5605 of FIG. 56, acomparison table is presented with the features organized in aprioritized manner in accordance with the hierarchy. A particular itemmay be chosen, and similar competing items would be compared to it. Forexample, the prices of a service may be compared to the prices of othersimilar services. The advantages of selected items could also behighlighted against similar competing and noncompeting items.

Needs Assessment/Buyer Assistant

-   Interacts with users to understand their needs-   Provides solutions based on user needs (capacity, performance, cost)-   Saves solutions to be retrieved at later point-   Adds solutions to shopping cart-   Provides online ROI tool to guide selection process-   Provides web call-through for further user support

With reference now to operation 5406 of FIG. 54, another embodiment ofthe electronic commerce component of the present invention is providedfor facilitating a virtual shopping transaction by ascertaining needs ofa user. A more detailed description is shown in FIG. 58. First, needsand requirements of a user are input by the user. Then the needs andrequirements are analyzed in operation 5802. Available products arereviewed in FIG. 5804 and placed on a list from which one or more itemswill be selected based on the user input. Next, in operation 5806, asolution is generated based on the requirements of the user after whichthe solution is displayed, as indicated in operation 5808. FIG. 59provides an example of operation 5806. The items would be preassociatedwith keywords in operation 5900. In operation 5902, selection of itemsbased on keyword taken from the user input may be performed. When akeyword input by the user matches a keyword associated with an item, theitem is displayed in operation 5904. If no keywords match, the user'swords could be analyzed using a thesaurus to find keyword matches inoperation 5906. A payment is then accepted in exchange for the solutionin operation 5810 of FIG. 58, as will be discussed in more detail below.It should be noted that in the present description, the solutionincludes either a product or a service, or both.

As an option, the solution may be stored for allowing the purchase ofthe solution at a later time. Further, the solution may be grouped witha plurality of items selected for being purchased together. In theforegoing description, the needs of the user may refer to parametersincluding either capacity, performance, or cost. It should be noted thatthe needs of the user are assessed by receiving input from the user.

Product Configurator

-   Lists all the options related to a product or service-   Allows users to piece together a single product/service or set of    products-services-   Validates integrity of configurations and calculates    prices/availability-   Only shows available options-   Adds configurations to shopping cart-   Saves configurations to be retrieved at later point-   Incorporates 3rd party products (partner products)

In still yet another embodiment, a method, system, and article ofmanufacture is provided for allowing a user to customize an item forpurchase in a virtual shopping environment, as shown in FIG. 54,operation 5408. FIG. 60 provides more detail. Referring to FIG. 60, aplurality of items for purchase are first displayed m operation 6002, asdiscussed above. Each of the items includes a plurality of availablefeatures which are displayed in operation 6003, preferably with theprice of each feature, including cost for adding the feature and costsavings for removing the feature. Next, a user is permitted to selectthe available features of each of the items to be purchased, asindicated in operation 6004. For example, a user may indicate whichfeatures of the item the user wants to be included with the item andwhich items the user wishes absent or removed. If the item is a product,an illustration or picture of the product with only the selectedfeatures should be made available so that the user can see the productin various configurations. As an option, a total price and availabilitymay be determined with respect to the selected items and the selectedfeatures thereof for display purposes in operation 6006. Further, inoperation 6008, payment is accepted in exchange for the selected itemsand the selected features thereof. It should be noted that in theforegoing description, the items each include either a product or aservice or both, and may also include third party products and services.

While the available features which are displayed, the features of theitems that are unavailable are hidden. Further, the selected featuresare stored for allowing the user to collectively select the selectedfeatures at a later time without having to select each of the featuresindividually.

The present invention provides a system and method for conductingcommerce via an electronic means, such as a computer network, cabletelevision network, or direct dial modem. Previous attempts to provideelectronic commerce subsystems have been custom tailored to anindividual commerce offering, and have not been adaptable to be able toprovide a versatile system capable of supporting a wide range ofproviders of goods and services.

To meet this need, several companies have developed computerarchitectures for online electronic catalog sales using, for example,the Internet as a transport mechanism to transmit data representingpurchase requests between a proprietary browser and server product pair.

For example, Netscape Communications uses its Navigator/Netsite WorldWide Web (WWW) browser/server pair. A buyer uses a Navigator to select aseller's Netsite server (sort of an electronic storefront), which is inturn coupled to standard application servers (back-end subsystems),e.g., a credit server or a member server for collecting demographicinformation on customers. These servers contain the business rulesdefined by the seller, e.g., what credit cards are accepted and whatcustomer information is tracked during each sale. Some of these serversare connected to external, third-party services, e.g., the credit serverto an external credit card processing network or the member server to anexternal demographics processing module. The actual applications e.g.,on-line publishing or catalog sales, are represented as extensions ofthe application servers. Equivalently, the application servers are saidto be instantiated in the applications. The net result of this approachis that the business rules (from the application servers) are embeddedinto the applications along with the application logic or presentation.

Another company, Open Market, is developing a similar electronic catalogsystem consisting of a HyperText Markup Language (HTML) authoring tool(called Storebuilder), and a server (called WebServer) connected to anintegrated back-end commerce system (called TransactionLink). Thissystem appears to share similar characteristics and disadvantages as theNetscape system.

Any of the foregoing types of browsers may employed to access variousdatabases via the Internet in order to conduct electroniccommerce-related business. Typical database or file-based shopping cartsystems require that the user be uniquely identified in order toassociate particular data stored on the server with a particular user.This requires the user to log-in or create an account, which is thenstored in the server. Each subsequent request from the user mustreference the unique identifier, either in the uniform resource locator(URL) or as hidden data passed back through a form submission. Either ofthese approaches require that the account or ID information of the userbe stored on the remote server in the network for some definite periodof time. Usually, the user must keep track of the account identifier inorder that the prior session information can be retrieved.

It is desirable, to the extent possible, existing terminal hardwareappropriately adapted and modified to incorporate the principles of thepresent invention. Hardware suitable for this purpose is sold by NCR.This equipment, a self-service terminal system identified as model NCR5682, incorporates the data gathering and transaction processingcapabilities of conventional automated teller machines with video,graphics, audio and printer operations. Interactivity with the customeris governed by a software system through the use, for example, of akeyboard or an infrared touch screen using prompts. Transactions may becompleted through the use of a credit card reader and a PIN numberentering means.

In one example of a related system, insurance agents at remote officeon-line terminals communicate with a central processor which includes adata bank, storing data as to risks to be insured, client information,insurance premium information and predetermined text data forincorporation into insurance contracts. An agent at a terminal keys ininformation regarding a risk and other data needed to write insurancefor that risk. To assist him, a “form” is displayed on his terminal bythe central processor, and he merely enters the pertinent information inthe blanks provided. The information is correlated in the centralprocessor, from which a premium quotation is transmitted back anddisplayed at the agent's terminal and in which a client data base isestablished with the information from the form. Errors or omissions aredetected and the agent or client is notified. If the policy is to bewritten, a formal contract is printed under the control of the centralprocessor and electronically stored and displayed to underwriterpersonnel. Concurrently the insurance contract is mailed to the client.The underwriter can decide to cancel or alter the contract.Alternatively, the underwriting function is carried out before thecontract is printed and mailed. In this system, the terminals operateon-line, underwriting is performed by a human underwriter, and theinsurance contract is printed remotely from the client and mailed tohim. The on-line terminals are not automatic self-service vendingmachines; the client must deal with the company through agents.

In another example of a related system, a terminal includes a CPU and iscoupled to a memory unit which has data bases storing information.Certain elements are assigned weights. The system is used byunderwriters to assist them in performing their underwriting functions.

Still yet another system is adapted for automatically dispensinginformation, goods and services to a customer on a self-service basisincluding a central data processing center in which information onservices offered is stored. Self-service information sales terminals areremotely linked on-line to the central data processing center and areprogrammed to gather information from prospective customers on goods andservices desired, to transmit to customers information on the desiredgoods or services from the central data processing center, to takeorders for goods or services from customers and transmit them forprocessing to the central data processing center, to accept payment, andto deliver goods or services in the form of documents to the customerwhen orders are completed. The central data processing center is alsoremotely linked to institutions, such as insurance companies, servicedby the system to keep the institution updated on completed sales ofservices offered by that institution. As noted, the terminals in thissystem are on-line with the central data processing center.

Another system is provided using self-service terminals for dispensingvoice and video information, printed documents, and goods and foraccepting orders and payments therefor for travel related services bycurrency or credit card. The self-service terminals include a processor,printer, dispenser, data sources including a mass storage unit, a cardreader, a coin box, and a communication device for communicating with aremote service center. The mass storage unit stores transitoryinformation, such as flight schedules, ticket prices, weatherinformation and other information useful in the planning of a businesstrip or vacation which is periodically updated via a communication linkwith the remote control center. The self-service terminal normallyoperates off-line.

Payment for items purchased over the Internet is also a concern. Today,approximately 350 billion coin and currency transactions occur betweenindividuals and institutions every year. The extensive use of coin andcurrency transactions has limited the automation of individualtransactions such as purchases, fares, and bank account deposits andwithdrawals. Individual cash transactions are burdened by the need tohave the correct amount of cash or providing change therefor.Furthermore, the handling and managing of paper cash and coins isinconvenient, costly and time consuming for both individuals andfinancial institutions.

Although checks may be written for any specific amount up to the amountavailable in the account, checks have very limited transferability andmust be supplied from a physical inventory. Paper-based checking systemsdo not offer sufficient relief from the limitations of cashtransactions, sharing many of the inconveniences of handling currencywhile adding the inherent delays associated with processing checks. Tothis end, economic exchange has striven for greater convenience at alower cost, while also seeking improved security.

Automation has achieved some of these qualities for large transactionsthrough computerized electronic funds transfer (“EFT”) systems.Electronic funds transfer is essentially a process of value exchangeachieved through the banking system's centralized computer transactions.EFT services are a transfer of payments utilizing electronic “checks,”which are used primarily by large commercial organizations.

The Automated Clearing House (“ACH”) where a user can enter apre-authorized code and download information with billing occurringlater, and a Point Of Sale (POS) system where a transaction is processedby connecting with a central computer for authorization for thetransaction granted or denied immediately are examples of EFT systemsthat are utilized by retail and commercial organizations.

Home Banking bill payment services are examples of an EFT system used byindividuals to make payments from a home computer. Currently, homebanking initiatives have found few customers. Of the banks that haveoffered services for payments, account transfers and information overthe telephone lines using personal computers, less than one percent ofthe bank's customers are using the service. One reason that Home Bankinghas not been a successful product is because the customer cannot depositand withdraw money as needed in this type of system.

Current EFT systems, credit cards, or debit cards, which are used inconjunction with an on-line system to transfer money between accounts,such as between the account of a merchant and that of a customer, cannotsatisfy the need for an automated transaction system providing anergonomic interface.

To implement an automated, convenient transaction that can dispense someform of economic value, there has been a trend towards off-linepayments. For example, numerous ideas have been proposed for some formof “electronic money” that can be used in cashless payment transactionsas alternatives to the traditional currency and check types of paymentsystems.

The more well known techniques include magnetic stripe cards purchasedfor a given amount and from which a prepaid value can be deducted forspecific purposes. Upon exhaustion of the economic value, the cards arethrown away. Other examples include memory cards or so called smartcards which are capable of repetitively storing information representingvalue that is likewise deducted for specific purposes.

It is desirable for a computer operated under the control of a merchantto obtain information offered by a customer and transmitted by acomputer operating under the control of the customer over a publiclyaccessible packet-switched network (e.g., the Internet) to the computeroperating under the control of the merchant, without risking theexposure of the information to interception by third parties that haveaccess to the network, and to assure that the information is from anauthentic source. It is further desirable for the merchant to transmitinformation, including a subset of the information provided by thecustomer, over such a network to a payment gateway computer system thatis designated, by a bank or other financial institution that has theresponsibility of providing payment on behalf of the customer, toauthorize a commercial transaction on behalf of such a financialinstitution, without the risk of exposing that information tointerception by third parties. Such institutions include, for example,financial institutions offering credit or debit card services.

Such secure payment technologies include Secure Transaction Technology(“STT”), Secure Electronic Payments Protocol (“SEPP”), Internet KeyedPayments (“iKP”), Net Trust, and Cybercash Credit Payment Protocol. Oneof ordinary skill in the art readily comprehends that any of the securepayment technologies can be substituted for the SET protocol withoutundue experimentation. Such secure payment technologies require thecustomer to operate software that is compliant with the secure paymenttechnology, interacting with third-party certification authorities,thereby allowing the customer to transmit encoded information to amerchant, some of which may be decoded by the merchant, and some whichcan be decoded only by a payment gateway specified by the customer.

Another such attempt to provide such a secure transmission channel is ageneral-purpose secure communication protocol such as Netscape, Inc.'sSecure Sockets Layer (hereinafter “SSL”), as described in Freier,Karlton & Kocher (hereinafter “Freier”). The SSL Protocol Version 3.0,March 1996, and hereby incorporated by reference. SSL provides a meansfor secure transmission between two computers. SSL has the advantagethat it does not require special-purpose software to be installed on thecustomer's computer because it is already incorporated into widelyavailable software that many people utilize as their standard Internetaccess medium, and does not require that the customer interact with anythird-party certification authority. Instead, the support for SSL may beincorporated into software already in use by the customer, e.g., theNetscape Navigator World Wide Web browsing tool. However, although acomputer on an SSL connection may initiate a second SSL connection toanother computer, a drawback to the SSL approach is each SSL connectionsupports only a two-computer connection. Therefore, SSL does not providea mechanism for transmitting encoded information to a merchant forretransmission to a payment gateway such that a subset of theinformation is readable to the payment gateway but not to the merchant.Although SSL allows for robustly secure two-party data transmission, itdoes not meet the ultimate need of the electronic commerce market forrobustly secure three-party data transmission. Other examples ofgeneral-purpose secure communication protocols include PrivateCommunications Technology (“PCT”) from Microsoft, Inc., SecureHyper-Text Transport Protocol (“SHTTP”) from Terisa Systems. Shen,Kerberos, Photuris, Pretty Good Privacy (“PGP”) which meets the IPSECcriteria. One of ordinary skill in the art readily comprehends that anyof the general-purpose secure communication protocols can be substitutedfor the SSL transmission protocol without undue experimentation.

Banks desire an Internet payment solution that emulates existing Pointof Sale (POS) applications that are currently installed on their hostcomputers, and require minimal changes to their host systems. This is acritical requirement since any downtime for a banks host computer systemrepresents an enormous expense. Currently, VeriFone supports overfourteen hundred different payment-related applications. The largenumber of applications is necessary to accommodate a wide variety ofhost message formats, diverse methods for communicating to a variety ofhosts with different dial-up and direct-connect schemes, and differentcertification around the world. In addition, there are a wide variety ofbusiness processes that dictate how a Point of Sale (POS) terminalqueries a user for data and subsequently displays the data. Also,various vertical market segments, such as hotels, car rental agencies,restaurants, retail sales, mail sales/telephone sales require interfacesfor different types of data to be entered, and provide differentdiscount rates to merchants for complying with various data types.Moreover, a plethora of report generation mechanisms and formats areutilized by merchants that banking organizations work with.

Banks are unwilling to converge on “standards” since convergence wouldfacilitate switching from one acquiring bank to another by merchants. Ingeneral, banks desire to increase the cost that a merchant incurs inswitching from one acquiring bank to another acquiring bank. This isaccomplished by supplying a merchant with a terminal that onlycommunicates utilizing the bank's proprietary protocol, and by providingother value-added services that a merchant may not be able to obtain atanother bank.

Internet-based payment solutions require additional security measuresthat are not found in conventional POS terminals. This additionalrequirement is necessitated because Internet communication is done overpublicly-accessible, unsecured communication line in stark contrast tothe private, secure, dedicated phone or leased line service utilizedbetween a traditional merchant and an acquiring bank. Thus, it iscritical that any solution utilizing the Internet for a communicationbackbone, employ some form of cryptography.

As discussed above, the current state-of-the-art in Internet basedpayment processing is a protocol referred to as SET. Since the SETmessages are uniform across all implementations, banks cannotdifferentiate themselves in any reasonable way. Also, since SET is not aproper superset of all protocols utilized today, there are bankprotocols which cannot be mapped or translated into SET because theyrequire data elements for which SET has no placeholder. Further, SETonly handles the message types directly related to authorizing andcapturing credit card transactions and adjustments to theseauthorizations or captures. In a typical POS terminal in the physicalworld, these messages comprise almost the entire volume of the totalnumber of messages between the merchant and the authorizing bank, butonly half of the total number of different message types. These messagetypes, which are used infrequently, but which are critical to theoperation of the POS terminal must be supported for proper transactionprocessing.

With the increasing popularity of computer communications, manycompanies are becoming interested in advertising and supporting theirproducts using an online computer service that can be accessed bycustomers. However, creating a large online computer service is anextensive task. To develop a sophisticated online service, such asAmerica Online®, CompuServe®, Genie®, or Prodigy®, a company must have alarge mainframe computer and customized software. Developing thecustomized software requires a competent programming staff and a gooddeal of time. Most companies do not have the resources required todevelop such systems, and thus cannot easily develop and maintain anonline presence.

One way a company can contact millions of potential customers is to usethe global Internet. The global Internet is a network of computernetworks that links together millions of computer systems using the welldefined TCP/IP protocol.

A new method of distributing and viewing information known as theWorld-Wide Web has recently become very popular on the global Internet.The World-Wide Web is a collection of servers connected to the Internetthat provide multi-media information to users that request theinformation. The users access the information using client programscalled “browsers” to display the multi-media information.

World-Wide Web servers store multi-media information in a documentformat known as HyperText Markup Language (HTML). The World-Wide Webservers distribute the HTML formatted documents using a specificcommunication protocol known as the HyperText Transfer Protocol (HTTP).

To access the multi-media information available on World-Wide Webservers, a user runs a client browser program that accesses the HTMLformatted documents stored on the HTTP servers connected to the globalInternet. The client browser program retrieves the formatted informationand provides the information in an appropriate manner to the user. Forexample, the client browser program displays graphical image informationas images on the user's graphical display screen; plays videoinformation as video animation on the user's graphical display screen;displays text information as text on the user's screen; and plays soundsamples using the speakers on the user's computer system. “Mosaic”, onepopular client browser program, is widely available to the users of theglobal Internet.

For a company that wishes to develop an online presence, creating aWorld-Wide Web Server would provide a feature rich online serviceavailable to customers and clients. A World-Wide Web Server can storeimages, text, animation, and sounds that provide information about thecompany. Furthermore, World-Wide Web Servers can be implemented onrelatively simple computer systems, including personal computers.

Most World-Wide Web Servers are coupled to the global Internet. Bydeploying a World-Wide Web Server on the global Internet a company wouldcreate online service that is accessible to the millions of globalInternet users.

Alternatively, a company can deploy a HTTP server that is available tocustomers through dial-up phone service. A dial-up HTTP server would beaccessible to customers and clients that do not have Internet access.Thus, by creating a simple HTTP server, any organization or corporationcan create an online presence.

However, quickly creating the HTML formatted documents required for aWorld-Wide Web Server is not a trivial task. Moreover, the standard HTTPserver software, without any additional programming, is very limited.For example, without custom extensions, an HTTP server cannotaccommodate complex transactions between a user and the HTTP server orintegrate a database system into an online service. Although it ispossible to write custom extensions to the HTTP server software using aconventional programming language, such custom extensions are difficultto write except by experienced programmers. Thus, to be able to quicklydeploy full-featured HTTP servers, it would be desirable to have adevelopment tool usable by non-programmers that allows a developer toquickly and easily create a full-featured online service based upon theHTTP and HTML standards.

Many programming development tools are known in the art. Theseprogramming development tools range from tools which are developed andmarketed as general purpose programming development tools tosophisticated special purpose development tools for developing specifictypes of applications.

For example, the Information Exchange Facility (IEF) general developmenttool, which is available from Texas Instruments, is used by professionalprogrammers to develop application programs. Essentially, IEF provides afacility that allows a programmer to write “pseudo code” and IEFgenerates an intermediate source code program in a high levelprogramming language (such as COBOL or C code) based on the “pseudocode”. IEF is an example of what will be referred to herein as a“general purpose development tool” because it allows development ofprograms for essentially any purpose or application dependent on theinput provided by the programmer.

In contrast to general purpose software development tools, manyapplication programs themselves provide special purpose “developmenttool” capability. An example is the Paradox™ database program availablefrom Borland International of Scotts Valley, Calif. The Paradox™database allows end users to develop sophisticated database applicationswhich would have been developed by professional programmers a few yearsago. The Paradox™ database is but one example of a special purposedevelopment tool.

Another example of a special purpose development tool is the ApplicationDevelopment Environment of Lotus Notes™ which is available from LotusDevelopment Corporation of Cambridge, Mass. The Application DevelopmentEnvironment of Lotus Notes provides features which are said to allow forrapid development of workgroup applications such as sharing of documentsbetween users over a network. Generally, Lotus Notes and, thus, itsApplication Development Environment, is directed at sharing of documentsamong persons in an authorized work group.

The Lotus Notes Application Development Environment provides for suchfeatures as (i) application design templates which are said to allowsophisticated applications to be built by customizing pre-builtapplications such as document libraries, form-based approval systems,project tracking applications and status reporting systems; (ii)security; (iii) database access; and (iv) discussion groups.

The ability to perform commercial transactions that involve order entrysystems would allow an online system to sell goods and services tocomputer users. It is now recognized that many functions such astraditional order entry systems and the like will someday be carried outover computer networks by allowing a customer to place orders for goodsand services directly with an online service. By way of example, eventoday, food orders can be placed with restaurants over computernetworks; videos can be reserved at the local video store; and bankingtransactions can be carried out simply by logging onto a computernetwork.

Four different types of commercial transactions might commonly occur ina commercial online service. First, a user may be charged for the rightto access all or parts of a useful publicly accessible online system.Second, the online service may pay the user for performing some type ofaction such as winning a contest or completing a marketing survey.Third, an online service may charge a content provider for placingcertain information on the online service. For example, a contentprovider can be charged for placing an advertisement on the onlineservice. Finally, a content provider can be paid by the online servicefor providing information that users may wish to access, can be can beprovided on a for-fee basis. Conversely, an online service provider maywish to pay third party content providers for placing useful material onthe online service.

Thus, when creating a publicly accessible online system, it is desirableto include the ability to define fee structures for accessing parts ofthe online system and/or ordering other goods or services. However,creating a sophisticated commercial online service with such featuresusually requires specialized programming.

Advertisement and Promotion Capabilities

-   Provides cross-selling and up-selling based on a product-service-   Provides cross-selling and up-selling based on a user-   Provides advertisements or promotions based on a product/service-   Provides advertisements or promotions based on a user-   Links all cross-selling, up-selling, advertisements, promotions to    further detail or purchasing ability

One embodiment of the electronic commerce component of the presentinvention is adapted for advertising in a virtual shopping environmentin operation 5410 of FIG. 54. FIG. 61 illustrates the operation in moredetail. In operation 6102, a plurality of items, i.e. products orservices, are displayed for purchase. Along with the items beingdisplayed for purchase, or on a subsequent page or pages, advertisementto information which relates to at least one of the items displayed forpurchase are displayed in operation 6103. FIG. 62 provides more detailof operation 6103. The advertisements are preferably preassociated withindividual items or may be associated with an entire classes of items inoperation 6200. When the items are selected for display, one or more ofthe advertisements is automatically displayed as well in operation 6202.In operation 6204, if there are many advertisements, the advertisementsare rotated so that each gets an equal amount of display time, oraccording to the premium paid by the advertiser. A user is permitted toselect the items for purchase, as indicated by operation 6104. Paymentis then accepted in exchange for the selected items in operation 6105.While the virtual shopping environment is being used, advertisementinformation may be displayed which relates to at least one of the itemsfor purchase and also relates to the user based on the profile of theuser. This is particularly useful where the advertisements are beingrotated. Then the advertiser would be billed based upon the number oftimes its advertisement was shown Note that the items each include atleast one of a product and a service.

As an option, the advertisement information may further includepromotion information or advertise another item separate from the itemto which the advertisement information is related. As yet anotheroption, the advertisement information is specifically tailored for theuser based on a profile of the user. Further, cross-selling andup-selling based on a product or service, as well as of the user, may beprovided. Ideally, all cross-selling, up-selling, advertisements, andpromotions are linked to pages containing greater detail or to apurchasing area.

The use of advertising revenues to pay for information dissemination iswell established in domains such as television and radio in which enduser, are tuned to a continuous signal over a lengthy period of time. Insuch systems, due to the continuous nature of the signal being monitoredby the end users, the end users are sufficiently similar to a “captiveaudience” that many or most end users remain tuned to the same signaleven when the main program to which they are listening or viewing isinterrupted by advertisements.

Another example of advertising mixed with information dissemination isthe use of scrolled text at the bottom of a television of computerscreen, where the main program occupies most of the end user's visualfield and a smaller portion is occupied by advertisements and the likeon a “scroll bar” or similar visual device along the periphery of thescreen. In some contexts, such as cable television channels that displaya “stock ticker tape,” this relationship is reversed: the informationportion of the screen occupies a small part of the screen, such ashorizontally scrolling image region at the top or bottom of the displayand the remainder of the screen is occupied by advertisements,“infomercials” and the like.

Yet another example of mixing advertisements with informationdissemination are newspapers and magazines.

Most, and perhaps all such examples of mixing advertisements withinformation content are based on systems in which the end user hasactively elected to view or listen to a program or to otherwise receiveinformation. Furthermore, in virtually all such systems or media, thejuxtaposition or placement of advertisements and information content isexplicitly programmed or determined by human beings working as “editors”or in a similar content and/or presentation editing capacity.

Distributing information via the Internet or other publicly accessiblecomputer communication networks has been largely unsupported byadvertising revenues due to the lack of good mechanisms for mixingadvertising and information content in such a way as to be acceptable toboth end users and advertisers. There are, of course, some exceptionswhere advertising/content mixtures from other contexts, such asnewspapers and television, have been simply replicated on the Internet.For instance, some newspapers have been “published” at least in part onthe Internet, and include advertisements along with information content.In fact, some newspapers sell advertising space on an associated WorldWide Web (WWW) site, which often includes extensive listings of certaintypes of advertisements such as real estate advertisements, personaladvertisements, and so on. Similarly, the scroll bar type advertisementat the bottom of a computer screen is based on similar advertisingtechniques used in cable television and other television contexts.

There are also examples of computer programs which containadvertisements. In all to such examples known to the inventors, theadvertisements are either permanently embedded in the computer programsor reside permanently with computer programs such that they cannot beeasily updated.

Quote of Price and Availability

-   Displays list price-   Displays promotional pricing based on product-   Displays promotional pricing based on user-   Displays user specific pricing-   Handles multiple currency-   Provides general availability-   Provides user specific availability-   Saves quote to be retrieved and maintained at later point-   Adapts pricing for geographic markets-   Passes quotes to channel partners-   Determines credit available and terms-   Provides web call-through for non-standard pricing

Next provided is a method, system, and article of manufacture forselectively determining prices and availability of items, i.e. productsor services, for purchase in a virtual shopping environment based on auser profile, as performed by operation 5412 of FIG. 54. FIG. 63illustrates the operation in more detail. As shown in FIG. 63, inoperation 6302, a user profile is created from input about a user. Theuser profile is preferably created in a manner that predicts buyingtendencies. The virtual shopping environment is tailored automaticallybased on the user profile. A plurality of items (i.e., products orservices) for purchase are displayed, as discussed above. One examplewould be selecting at least one item for purchase based on the profileof the user in operation 6304 and displaying those items before otheritems in operation 6306. For example, the items may be placed in groups,the groups being based on estimated buying tendencies. Then, items fromthe group most closely matching the user's buying tendency, asdetermined above, are displayed. Further, the user is allowed to selectthe items for purchase in operation 6308. Factors that are tailoredinclude price and availability of the items. Payment is then accepted inexchange for the selected items in operation 6310, as discussed in moredetail below.

The virtual shopping environment may be tailored by generating pricesassociated with the items based on the profile of the user. As anoption, some or all of the prices may be promotional prices. Thepromotional prices may be offered based on the particular product or onthe profile of the user. Further, available credit and the terms ofreceiving that credit may be produced based on the profile of the user.

The virtual shopping environment is further tailored by generatingprices associated with the items based on a geographic location of theuser, and may be designed to handle multiple types of currency. At leastone of the prices that is generated may be stored and subsequentlydisplayed during a subsequent use of the virtual shopping environment bythe user. The virtual shopping environment may also be tailored byvarying availability of the items based on the profile of the user.

The tremendous number of product types available to consumers at theretail level, e.g., in food and grocery, personal care, hardware andappliances, means that a retailer may have thousands of models orvarieties of goods in inventory, each, of course, with a concomitantprice. The result of this multitude of consumer products is that thecontrol and consistency of pricing has assumed increasing importance,especially where retailing is highly competitive and price management isessential for a merchant to keep pace with competitors.

One area that has produced such a multitude of products and that hasbecome a highly competitive selling environment is consumer appliancesand electronics. Each type of product, e.g., a television set, istypically available from several different manufacturers, and eachmanufacturer typically produces several models of the same type productThe prices of products vary from manufacturer to manufacturer as well aswithin the same manufacturer's range of models, depending upon theparticular specifications and features of each model within the producttype. Moreover, each manufacturer sells its products through a largenumber of distributors and, ultimately, to retail stores, with theresult that the pricing of the same product can differ from distributorto distributor, from retailer to retailer and from geographic market togeographic market Even within a single merchant's inventory, pricevariations on an to individual product occur, e.g., an advertisedspecial versus the “regular” price.

To keep pace with competitors, a merchant may obtain pricing informationby reviewing competitors' advertisements, printed or otherwise, byactual shopping of competitors and viewing of price tags in acompetitor's store or outlet, or from a customer at the point of salewho claims that a certain product can be purchased from a competitor fora certain (i.e., lower) price. “Sale” prices are particularlyproblematic as such prices are typically only valid for a definedperiod, after which the “sale” price reverts to the “regular” price. Ifa merchant wishes to change prices in response to a competitor's price,usually special effort is required to change price tags at points ofsale to meet or “beat” the competitor's price. The manual nature of theprocess does not permit prices to change frequently, such as once ortwice per day. Such frequency is prohibitive, and thus, a merchantcannot respond daily to market price changes involving hundreds tothousands of products. Moreover, keeping track of the valid period for“sale” prices adds yet another layer of complexity. Further, if acompetitor's pricing becomes known at the point of sale, the salespersonmust determine if he or she is willing to sell the product for a loweror the same price, (i.e., in accordance with the merchant's pricingpolicy).

Various pricing systems are known, although virtually none implementcomplex pricing policies. Many systems, especially in the stockbrokerage area, will provide market pricing of stocks. While thesesystems can accommodate a continually changing price situation, theactual pricing, of course, is independent of the system, i.e., pricingis controlled by the stock market The current wide-ranging use ofcomputer systems provides a relatively large potential market toproviders of electronic content or information. These providers mayinclude, for example, advertisers and other information publishers suchas newspaper and magazine publishers. A cost, however is involved withproviding electronic information to individual consumers. For example,hardware and maintenance costs are involved in establishing andmaintaining information servers and networks. In addition, labor costsare involved in keeping the information in the servers current.

One source which can be accessed to provide the monetary resourcesnecessary to establish and maintain such an electronic informationnetwork is the individual end users which consume the electronicinformation. This electronic information, however, has different valueto different users. For example, some users will be very accepting ofadvertising as part of the electronic information, whereas others willbe opposed to receiving advertisements. Thus, it would be beneficial toprovide a system which allows individual users to control the amount ofelectronic advertising they receive with their electronic content.

In addition, providers of electronic advertisements would be able tosubsidize the cost of electronic content for end users. The amount ofthis subsidy would be dependent on the amount of electronic advertisingwhich is consumed by the end users and the perceived quality of theseconsumers. Thus, it would be beneficial to provide a system which allowsthe providers of electronic advertisements to provide advertising-basedsubsidization of electronic content consumption, based upon theperceived quality of consumers who have specifically chosen to consumethese advertisements, cognizant of the fact that consuming theseadvertisements will subsidize their electronic content consumption fees.

Order Placement

-   Collects user information for order processing (shipping, billing)-   Recaps order for confirmation (shipping, price, availability)-   Allows for order maintenance (qty, product, shipping)

Referring to operation 5414 of FIG. 54, another embodiment of theelectronic commerce component of the present invention receives an orderfor at least one of the products and services. User information iscollected for order processing, including an address for delivery andbilling. In the alternative, a user may enter an alphanumeric coderepresentative of a source of currency, such as a credit card number orbank account number. Optionally, the user may be allowed to select ashipping provider other than a default provider. The availability of thedesired product is confirmed, as are the price and shippingarrangements. As an option, the invention may require the user toconfirm that the desired product or service has been ordered, that theprice is satisfactory, and that the desired shipping provider isselected.

Tax and Shipping Calculations

-   Provides tax cost on associated order-   Provides shipping cost on associated order-   Handles multiple tax laws within US-   Handles multiple tax implication globally

As shown in FIG. 54, operation 5416 calculates at least one of a tax anda shipping fee for at least one of the items, i.e., products andservices, for which the order is received. The tax cost for each orderis calculated, and may include a listing of the tax per item. Theshipping costs for each item or order may also be calculated, such as bytaking into account handling costs, the total weight of the items, thedistance to final destination of the items, and the correspondingcharges of the shipping provider. An estimate of the delivery date mayalso be given. It should be noted that mileage and the like could becalculated where services are to be rendered at a location remote to theprovider.

Optionally, mathematical formulas based on multiple applicable tax lawsmay be used in the calculation of the tax. Such applicable tax laws mayinclude only domestic taxes for domestic delivery, and may includeapplicable foreign tax laws for imported and exported items.

Transaction Processing Capabilities

-   Processes credit card transactions-   Processes purchase order transactions on backend systems-   Places actual order with fulfillment house for physical shipping-   Sends electronic fulfillment to the user-   Provides order confirmation and tracking number-   Supports micropayment processing

Another embodiment of the invention processes transactions pertinent tothe purchase of items. For example, credit card transactions areprocessed, as are purchase order transactions. A structured payment planmay also be created. The actual order is placed with a fulfillment housefor physical shipping of a product, or the order is placed with aprovider of an ordered service. Optionally, notification may be sent tothe user to notify the user that the transaction is being completed orconfirmation that the order has been completed. Also optionally, atracking number may be sent to the user for assisting a user todetermine the shipping status of a product.

Also envisioned is a quick-stop mass retail system which enablespurchasers to order and purchase articles from a remote location forpickup at an article pickup area at an automated store.

In accordance with the above, the present invention may provide aquick-stop mass retail system for ordering and purchasing articles froma remote location for pickup at an article pickup area at an automatedstore, comprising: an interactive system for communicating a customer'spurchase order for at least one article; a host computer includingprovisions for receiving the customer's purchase order; processing thecustomer's purchase order; and storing the customer's purchase order ina database; a system for retrieving the article ordered by the customerfrom a storage location for the article at the automated store, the hostcomputer communicating with the system for retrieving; a system forretrieving identification information from the customer, the system forretrieving identification information communicating with the hostcomputer, whereby the host computer enables the system for retrievingthe article to provide the article to the article pickup area uponobtaining the identification information and comparing theidentification with the customer's purchase order.

The quick-stop mass retail system may further include a system to enablea plurality of articles stored in a plurality of storage locationsassociated with the automated store to be retrieved, including a networkof dispensing stations interconnected by at least one device fortransporting the articles from the storage locations to the articlepickup area.

The quick-stop mass retail system may also have a system for detectingwhen inventory is to be restocked including, the system for detectingcommunicating with the host computer such that the host computerinitiates a purchase of additional inventory m response to the lowinventory detection.

The quick-stop mass retail system may have the host computer trackinventory of the articles to enable restocking of the respective storagelocations when detecting inventory below a certain level.

In accordance with a specific embodiment of the invention, a quick-stopmass retail system for ordering and purchasing articles from a remotelocation for pickup at an article pickup area at an automated storeincludes an interactive system for communicating purchase information tothe customer and communicating the customer's purchase order for atleast one article; a host computer including provisions for receivingthe customer's purchase order; processing the customer's purchase order;and storing the customer's purchase order in a database; a system forretrieving the article ordered by the customer from a storage locationfor the article at the automated store, the host computer communicatingwith the system for retrieving, wherein a plurality of articles arestored in a plurality of storage locations associated with the automatedstore and the system for retrieving the articles includes a network ofdispensing stations interconnected by at least one apparatus fortransporting the articles from the storage locations to the articlepickup area; a system for retrieving identification information from anidentification card or code associated with the customer, the system forretrieving identification information communicating with the hostcomputer, wherein the storage locations include a system for detectingwhen inventory is to be restocked, the system for detectingcommunicating with the host computer such that the host computerinitiates a purchase of additional inventory in response to the lowinventory detection, whereby the host computer enables the system forretrieving the article to provide the article to the article pickup areaupon obtaining the identification information and comparing theidentification with the customer's purchase order.

The present invention also encompasses a method for ordering andpurchasing articles from a remote location for pickup at an articlepickup area at an automated store, including the following steps:

-   (a) communicating a customer's purchase order for at least one    article via an interactive electronic network;-   (b) receiving the customer's purchase order at a host computer in    communication with the interactive electronic network;-   (c) processing the customer's purchase order and storing the    purchase order in a database;-   (d) retrieving identification information from an identification    card or code associated with the customer with a system for    retrieving information communicating with the host computer; and-   (e) retrieving the article ordered by the customer from a storage    location for the article at the automated store by a system for    retrieving articles communicating with the host computer and    delivering the article to the article pickup area.

The method can further comprise the step of the host computer detectingan inventory level threshold below which inventory of the article is tobe restocked.

Electronic License Distribution and Management

-   Tracks user license entitlements-   Creates an electronic license entry on backend systems-   Sends electronic license to user

As shown in FIG. 64, a method, system, and article of manufacture isprovided for automatically generating a contract between an owner ofsoftware and a user of the software. First, in operation 6402, a user isallowed to request to utilize a software package after which user inputrelating to the user is requested and received. See operation 6404 and6406, respectively. Such information may include identificationinformation such as name, address, etc. In operation 6408, a tailoredlicense agreement is then generated by utilizing the user input. FIG. 65illustrates a procedure for performing operation 6408. In operation6500, the terms of the license agreement are set forth. Licensoridentification information is included in operation 6501. Licensee(user) identification information is set forth in operation 6502.Optionally, verification of identification may be performed in operation6503, such as prompting a user to enter his or her telephone number andcross referencing the input number with telephone listings.

As an option, the license agreement may be sent to the user viaelectronic mail or the like in operation 6500. The present invention mayfurther track entitlements of the user granted under the licenseagreement. The user may even be prevented from utilizing the softwareuntil the license agreement is generated.

Most software vendors currently favor licensing as the preferred methodof distributing software. Licensing software provides the vendor with acertain amount of control over the distributed software which may beused to the vendor's advantage. For example, licensing software allowsthe vendor to prohibit unauthorized usage of the software that mightfacilitate unauthorized copying. In addition, licensing provides anadvantageous method of providing and billing for software. Throughlicensing, the vendor may sell several identical copies of the samesoftware and charge the buyer for each copy.

Licensing schemes have adapted to the network environment as well as theindividual personal computer. In a network environment, such as aclient-server network, multiple users may access the same copy of aparticular application. Consequently, the vendor can charge the networkowner not for the number of copies installed on the network, but for thenumber of users having access to the software.

Software is conventionally licensed using an agreement between thevendor and the user or administrator. The agreement is typically eithera conventionally signed contract or a “shrink wrap” agreement attachedto the packaging for the software, to which the licensee acknowledgesagreement by opening the package.

Although traditional licensing and shrink wrap licensing are more orless applicable to licensing for individual systems, they are notwell-suited to the network environment. Both traditional and shrink wraplicensing schemes are difficult to enforce on a network where severalusers have access to the software. Consequently, various electronicsystems have been devised for controlling access to software on anetwork.

Electronic licensing typically comprises providing a set of criteriaunder which a request for an application from the server should begranted. One licensing system uses a fixed set of licenses controlled bya license server. The license information is maintained in a licensedatabase, along with information regarding which applications are in useand how many units are still available. The information in the databasemay be encrypted to prevent forgeries. When an application is desired,the application commences running. Code embedded in the applicationinitially requests a license from the server to facilitate the executionof the application. The server checks the database of licenses, and ifthe appropriate licenses are available, grants the request. As requestsare received and licenses granted, the relevant information is loggedinto a file to track usage of the various applications.

If a license is not available, the client contacts another server tofind the appropriate license. The client in the conventional system hasthe responsibility to obtain licenses from the various servers, and theindividual servers provide resources at the client's request. Tofacilitate such licensing, the application typically includes a libraryof programs designed to contact the server, request a license, and trackthe resulting license.

When a call is made to a server, all of the execution occurs on eachindividual server for any particular call. Similarly, if a license islocated on a particular machine, all execution necessary to operate onthat license occurs on that machine. Consequently, a central servercontaining most of the licenses available on a particular network ismainly responsible for maintaining the licenses.

In addition, conventional licensing systems rely on code embedded in theapplication to establish the licensing attributes. Code is placed in theapplication which interprets information received from the server toestablish licensing parameters. Because the behavior of the license isnot established until after the request has been made and the licenseobtained, the user cannot read the license terms prior to the request.In addition, this system lacks flexibility. To change the licensingterms, the code in the application must be revised.

Recently, generation and sales of software programs have becomesignificant businesses both for companies which are primarily vendors ofhardware, as well as for companies which vend software alone. Softwareis typically sold under license, that is, vendors transfer copies ofsoftware to users under a license which governs how the users may usethe software. Typically, software costs are predicated on some belief asto the amount of usage which the software program may provide and theeconomic benefits, such as cost saving which may otherwise be incurred,which the software may provide to the users. Thus, license fees may bebased on the power of the processor or the number of processors in thesystem, or the number of individual nodes in a network, since thesefactors provide measures of the number of users which may use thesoftware at any given time.

In many cases, however, it may also be desirable, for example, to havelicenses and license fees more closely relate to the actual numbers ofusers which can use the program at any given time or on the actual useto which a program may be put. Furthermore, it may be desirable to limitthe use of the program to specified time periods. A problem arisesparticularly in digital data processing systems which have multipleusers and/or multiple processors, namely, managing use of licensedsoftware to ensure that the use is within the terms of the license, thatis, to ensure that the software is only used on identified processors orby the numbers of users permitted by the license.

A network environment for computers permits several computers orterminals to use or have access to one or more programs. Traditionally,an end user would have to obtain a license from a software vendor toauthorize use of the vendor's software on terminals or workstationswithin the network.

One method for providing access to software is known as the single-CPUor single processor license, wherein a software program is locked to aspecific CPU and access to that software is only permitted from theparticular licensed computer. A single-CPU license may create instanceswhere software is unavailable to all users because the computer is notfunctioning or because several users want to use the software at thesame time. To assure wide access, end users frequently must obtainunneeded CPU-locked software to assure availability and convenience.Companies with but a few users of a particular software programgenerally choose a CPU-locked system because it is, in effect, pricedproportionately to the number of users.

The second general method to provide access to software is known assite-licensing. With this method, a software program is available forall the computers at an installation. The number of users who may run asoftware package concurrently under a site license is theoreticallylimited only by the number of users in the computing environment.Although site-licensing may case administrative and operational problemsfor an end user, it normally does so at a premium price which takes intoaccount the lack of accountability that such flexible licensingprovides. A site license imposes unneeded costs where only a few usersof a company actually need the software.

In the instance where a software vendor offers a choice betweenCPU-locked and site licensed software, it is the number of expectedusers at a purchasing company which affects the purchasing choice. Ifmany of the end users at a company intend to use the software, forexample, then a site license may be the most appropriate distributionsystem because it may be the low-cost option. If the software only willbe used by a few workers, however, then a CPU-locked distribution systemmay be more appropriate. The trade-off point is determined by therelative pricing between the two distribution systems.

For environments where many users need the software but only spend aportion of their time using it, neither a dedicated CPU-locked licensenor a site license may be cost effective. In such a case, a user whoneeds more than a single copy of the software may not buy it, thusdepriving a vendor of potential revenue. Similarly, vendors losepotential revenue when they permit a company with a very large number ofusers to use software over an entire site, due to a general lack ofaccountability.

As computers have proliferated in availability, the investment incomputer software has also grown, and there have been developed variousmethods for charging the computer user for use of computer softwareproducts. Typically computer software products are licensed, rather thansold, to the computer user under various arrangements. The simplestcommon license arrangement gives the user the right to use a softwareproduct on a single computer, i.e., to employ only one centralprocessing unit (CPU) in connection with operation of the softwareproduct.

Although many such licenses are for indefinite periods of time, alicense may also be for a limited duration and extendable, so that theentity marketing the product can charge a periodic fee (for example,annually) for use of the software product. Or use may be absolutelytime-limited (for example, one-day), so that the user may evaluate thesoftware product for possible purchase of a regular license. Sincesoftware can be copied and moved easily from one like machine toanother, companies have invented methods to prevent unauthorized use oftheir software products. Some licensors require passwords to activatesoftware on a particular machine. The password may be keyed to thehardware's identification number as a condition for operation of thesoftware. Such systems can effectively lock software to a particularmachine, but do not address software that is licensed for concurrent orsimultaneous use. Some licensors use hardware locks that attach to aparallel printer port or a serial port on a machine; each time thesoftware is activated, it looks for a specified code, in the hardwarelock, as a condition for operation of the software. Using hardware locksresolves the problem of unauthorized moving of software among machines;however, hardware locks do not handle multiple software products on asingle machine, and they require time and expense to deliver to the enduser.

When computer software products are used in a network environment (whichmay include computers running in various roles as workstations andservers of various types linked together over a data path), additionallicensing challenges are present. For example, a network may permit auser at one node (which may be a terminal or workstation, for instance)to utilize a software product running at another node (which may be thenetwork server or even another workstation). Consequently, the terms ofthe single-computer type of software license might not cover the usageof the software product on the network, or worse still (from the pointof view of the licensor) might actually permit such a usage withoutadditional compensation to the licensor. One approach to networklicensing is to grant permission to use the program based on all of thenodes on the network, and to require a license for each node. Thentypically the license fee may be increased as the number of nodes on thenetwork increases. Another approach bases the license fee for a softwareproduct running on a network on the total number of individual users whomight actually run the software, regardless of the number of nodeseither on the network or running the software product at a given time.These approaches, however, have usually required the cooperation of thelicensee, because additional nodes may be added to the network, oradditional users may utilize the software, without the knowledge of thelicensor, who is typically not present on the premises of the licensee.The licensor may reserve the right to audit the licensee's site, butsuch an audit is intrusive, expensive, and may alienate potential oractual customers for licenses. Although other approaches exist underwhich one might charge a single fee per server or per site or perentity, often on an individually negotiated basis, these approaches areoften impractical or inflexible, in that they also typically do not takeinto account the possible wide variation over time in the number ofnodes or users and also require reliance on licensee cooperation.

Recently it has become practical in some network environments todetermine and limit the number of nodes that may access a softwareproduct at a given time, and to charge a license fee based on themaximum number of nodes that are permitted to use the software productconcurrently.

This is called “concurrent licensing”. In these environments, a computerprogram, acting as “librarian” and running on a computer node designatedas a license server, is typically used to distribute license keys(sometimes called “tokens”) over the network to nodes requesting accessto run a software product; the number of keys is tracked by thelibrarian; and if at a given time, the permitted maximum number of keyswould be exceeded by usage of the software product on a requesting node,the node can be denied, at such time, access to invoke the softwareproduct.

Examples of software-based concurrent licensing arrangements may befound in Unix applications running in connection with software productssold under the trademarks NetLS (available from Gradient Technologies,Inc., 577 Main Street, Suite 4, Hudson, Mass. 01749), and SunLic(available from Sun Microsystems, Inc., Mountain View, Calif.), andFlexible License Manager (available from Highland Software, Inc., 1001Elwell Court, Palo Alto, Calif. 94303).

WAF can securely manage the integration of control information providedby two or more parties. As a result, WAF can construct an electronicagreement between WAF participants that represent a “negotiation”between, the control requirements of, two or more parties and enactsterms and conditions of a resulting agreement. WAF ensures the rights ofeach party to an electronic agreement regarding a wide range ofelectronic activities related to electronic information and/or applianceusage.

Electronic Agreements and Rights Protection

An important feature of WAF is that it can be used to assure theadministration of, and adequacy of security and rights protection for,electronic agreements implemented through the use of the presentinvention. Such agreements may involve one or more of:

-   (1) creators, publishers, and other distributors, of electronic    information,-   (2) financial service (e.g. credit) providers,-   (3) users of (other than financial service providers) information    arising from content usage such as content specific demographic    information and user specific descriptive information. Such users    may include market analysts, marketing list compilers for direct and    directed marketing, and government agencies,-   (4) end users of content,-   (5) infrastructure service and device providers such as    telecommunication companies and hardware manufacturers    (semiconductor and electronic appliance and/or other computer system    manufacturers) who receive compensation based upon the use of their    services and/or devices, and-   (6) certain parties described by electronic information. WAF    supports commercially secure “extended” value chain electronic    agreements.

WAF can be configured to support the various underlying agreementsbetween parties that comprise this extended agreement. These agreementscan define important electronic commerce considerations including:

-   (1) security,-   (2) content use control, including electronic distribution.-   (3) privacy (regarding, for example, information concerning parties    described by medical, credit, tax, personal, and/or of other forms    of confidential information),-   (4) management of financial processes, and-   (5) pathways of handling for electronic content, content and/or    appliance control information, electronic content and/or appliance    usage information and payment and/or credit.

WAF agreements may define the electronic commerce relationship of two ormore parties of a value chain, but such agreements may, at times, notdirectly obligate or otherwise directly involve other WAF value chainparticipants. For example, an electronic agreement between a contentcreator and a distributor may establish both the price to thedistributor for a creator's content (such as for a property distributedin a WAF container object) and the number of copies of this object thatthis distributor may distribute to end-users over a given period oftime. In a second agreement, a value chain end-user may be involved in athree party agreement in which the end-user agrees to certainrequirements for using the distributed product such as acceptingdistributor charges for content use and agreeing to observe thecopyright rights of the creator. A third agreement might exist betweenthe distributor and a financial clearinghouse that allows thedistributor to employ the clearinghouse's credit for payment for theproduct if the end-user has a separate (fourth) agreement directly withthe clearinghouse extending credit to the end-user. A fifth, evolvingagreement may develop between all value chain participants as contentcontrol information passes along its chain of handling. This evolvingagreement can establish the rights of all parties to content usageinformation, including, for example, the nature of information to bereceived by each party and the pathway of handling of content usageinformation and related procedures. A sixth agreement in this example,may involve all parties to the agreement and establishes certain generalassumptions, such as security techniques and degree of trustedness (forexample, commercial integrity of the system may require each WAFinstallation secure subsystem to electronically warrant that their WAFnode meets certain interoperability requirements). In the above example,these six agreements could comprise agreements of an extended agreementfor this commercial value chain instance.

WAF agreements support evolving (“living”) electronic agreementarrangements that can be modified by current and/or new participantsthrough very simple to sophisticated “negotiations” between newlyproposed content control information interacting with controlinformation already in place and/or by negotiation between concurrentlyproposed content control information submitted by a plurality ofparties. A given model may be asynchronously and progressively modifiedover time in accordance with existing senior rules and such modificationmay be applied to all, to classes of, and/or to specific content, and/orto classes and/or specific users and/or user nodes. A given piece ofcontent may be subject to different control information at differenttimes or places of handling, depending on the evolution of its contentcontrol information (and/or on differing, applicable WAF installationcontent control information). The evolution of control information canoccur during the passing along of one or more WAF control informationcontaining objects, that Is control information may be modified at oneor more points along a chain of control information handling, so long assuch modification is allowed. As a result, WAF managed content may havedifferent control information applied at both different “locations” in achain of content handling and at similar locations in differing chainsof the handling of such content. Such different application of controlinformation may also result from content control information specifyingthat a certain party or group of parties shall be subject to contentcontrol information that differs from another party or group of parties.For example, content control information for a given piece of contentmay be stipulated as senior information and therefore not changeable,might be put in place by a content creator and might stipulate thatnational distributors of a given piece of their content may be permittedto make 100,000 copies per calendar quarter, so long as such copies areprovided to boni fide end-users, but may pass only a single copy of suchcontent to a local retailers and the control information limits such aretailer to making no more than 1,000 copies per month for retail salesto end-users. In addition, for example, an end-user of such contentmight be limited by the same content control information to making threecopies of such content, one for each of three different computers he orshe uses (one desktop computer at work, one for a desktop computer athome, and one for a portable computer).

Electronic agreements supported by the preferred embodiment of thepresent invention can vary from very simple to very elaborate. They cansupport widely diverse information management models that provide forelectronic information security, usage administration, and communicationand may support:

-   (a) secure electronic distribution of information, for example    commercial literary properties,-   (b) secure electronic information usage monitoring and reporting,-   (c) secure financial transaction capabilities related to both    electronic information and/or appliance usage and other electronic    credit and/or currency usage and administration capabilities,-   (d) privacy protection for usage information a user does not wish to    release, and-   (e) “living” electronic information content dissemination models    that flexibly accommodate:-   (1) a breadth of participants,-   (2) one or more pathways (chains) for: the handling of content,    content and/or appliance control information, reporting of content    and/or appliance usage related information, and/or payment,-   (3) supporting an evolution of terms and conditions incorporated    into content control information, including use of electronic    negotiation capabilities,-   (4) support the combination of multiple pieces of content to form    new content aggregations, and-   (5) multiple concurrent models.    Order Status and History-   Provides real-time order status (backorders)-   Provides real-time shipping status-   Provides real-time invoice status-   Provides history of previous orders and delivery information-   Ensures proactive notification of order/shipping problems

Referring to operation 5418 of FIG. 54, a status of delivery is outputfor at least one of the products and services for which the order isreceived. The order status of a desired order may be checked in realtime, especially useful when products are backordered or services havebeen delayed. Once the items have been shipped, the shipping status maybe provided, such as by requesting that the user input a tracking numberand retrieving data concerning that number from the shipping providerand displaying the result. Further, the status of an invoice may bechecked in real time for, for example, permitting a user to determinewhether a payment has been received and the like.

Any problems encountered relating to the order or shipping of the orderare result in proactive notification of the problem to the user. As anoption, the history of previous orders and related delivery informationmay be provided.

Lead Generation and Referral

-   Captures interest in a product or promotion-   Sends leads to sales effectiveness systems-   Updates database of leads

Another aspect of the electronic commerce component of the presentinvention has the purpose of capturing interest in a product, service,or promotion. The invention sends leads, notices, and advertisements tosales effectiveness systems where the leads are displayed ordisseminated to users. A database of the leads may be kept and updatedas desired.

Auction Capabilities

-   Facilitates dynamic auction creation-   Allows private and public auctions-   Supports multiple auction formats (e.g. Dutch, Reserve)-   Allows tracking and analysis of auction histories

The electronic commerce component of the present invention may includean auction component for permitting a user to bid on an item againstcompeting bidders. The auction component would permit private and publicauctions, and could even permit users to create their own auctions. Theauction component should permit selection of an auction format fromseveral different formats, including, for example, Dutch and Reserveauctions. Further, tracking and analysis of auction histories could alsobe provided.

Economic activity has at its centerpiece the buyer-seller transactionfor all goods and services produced and consumed in a market economy. Itis the fundamental mechanism to which resources are allocated toproducers and output to consumers. The operation of the buyer-sellermechanism can and often is a critical determination of economicefficiency and when operated properly, will substantially enhance marketperformance.

Through history, there have been many different approaches adopted tofairly bring buyers and sellers together, each with the key objective ofpermitting transactions at or as close as possible to the “market” priceof the goods. By definition, the market price is the price (in givencurrency terms) that a fully educated market, given full access willtransact select goods. This can only be accomplished by permitting fullaccess to the transaction by essentially all potential buyers andsellers. However, the buyer-seller transaction must be structured tooperate at very low costs—or it will distort the market price of goodswith the artificially high transactions costs. Thus, as can be seen, thetwo keys to effective buyer/seller transactions—full access andknowledge coupled with low costs—can be and are often conflicting,necessitating trade-offs between trading efficiency and marketknowledge.

One well-known and particularly successful trading system is known asthe “open outcry auction”. This involves a process wherein buyers andsellers collect in one location and prices for select goods arepresented to the group through a broker, via simple vocal offerings.This approach has been used for almost all kinds of goods, but isparticularly useful where there are no established trading locations ormarkets for the selected items. It is the dominate trading forum forexotic items such as rare pieces of art and the like. Althoughsuccessful in bringing interested parties to the transaction, theoverall process can be very expensive, adding significantly to themarket-distorting transaction costs.

Open outcry auction techniques, modified over time, have also foundsuccessful application in many commodity trading activities, includingthe buying and selling of farm produce and livestock, oil andcommodities contracts, future contracts on a variety of itemsand—particularly germane to the present invention—fixed incomesecurities. These trading activities focus on the buying and selling ofessentially fungible items, that is, items that are without meaningfuldifferentiation from like items on the market. For example, a bushel ofwheat for February delivery is considered for sale and delivery at aprice independent from its source. Similarly, a 30-year treasury bondpaying a coupon rate of 8 percent and having a July 1996 issue date isindistinguishable from other 30-year treasuries having the sameproperties. Accordingly, the price buyers are willing to pay and sellerswilling to accept defines in the market price of all 30-year treasurybonds of that same vintage, allowing a source transparent application ofopen outcry auction trading.

The fixed income securities issued by the United States Government areknown as U.S. treasuries. These instruments typically span maturityterms at issue of 13 to 52 weeks (T-bills), one to ten years (notes),and up to 30 years (bonds). The T-bills are pure discount securitieshaving no coupons. Almost all other treasuries having longer terms arecoupon notes or bonds, with a defined payment cycle of semi-annualpayments to the holder.

Treasuries have characteristic properties that make them especiallyuseful for the purpose of the present invention and, therefore, are usedexclusively in the following discussions with the fundamental tenantthat the principles may be applied to other types of fixed incomesecurities without departing from the inventive concepts. One importantattribute of treasuries, in the context of the present invention, is theminimal and uniform default risk; the issuance of U.S. government paperremoves the default risk as a defining criteria in the relative pricingof treasuries in the market place when they are backed by the full faithand credit of the U.S. government.

New treasury securities are auctioned by the U.S. government atpre-established auction dates. The auction prices for the treasurieshaving a face value with a set coupon rate will define the issuanceyields of the security. After the auction, the treasuries enter thesecondary market and are traded typically “over the counter”, i.e.,without a defined exchange. As inflation expectations and supply anddemand conditions change, the prices of the recently auctionedtreasuries fluctuate on the secondary market. These new prices arereflected by competing bid and ask prices communicated amonginstitutions, banks, brokers, and dealers in the secondary market. Forexample, the yield of a treasury note increases as its price drops inthe market, typically reflecting an overall increase in the interestrates for that term of security.

The newly auctioned securities are traded with and in conjunction withthe securities issued in earlier auctions. In this context, somesecurities are traded more often than others and are called the“actives”; the actives usually correspond to the recently in issuedsecurities as opposed to the older securities in the market. Indeed,some older securities are infrequently traded, creating an illiquidmarket that may or may not reflect the current market-determinedinterest rate for that maturity length security.

As can be realized by the foregoing description, the very size anddiversity of the treasury market implicates an unprecedented level ofsophistication by market participants in the bidding, offering, buying,and selling transactions involving these securities. The very complexityassociated with the transactions and the scale of trading undertaken bybanks, brokers, dealers and institutional participants necessitates arigidly structured approach to trading.

In the past, open outcry auction bond brokering has served its customerswell, providing highly efficient executions at near perfect marketpricing. The open outcry auction applied to bond trading was implementedby a broker working with a collection of customers to create and managea market. Typical customer representatives—both buyers and sellers—at acommon location (e.g., a single room) where the representatives of thecustomers would communicate with each other to develop pricing andconfirm transactions. This process employed the expression by therepresentatives of various bid and offer prices for the fixed incomesecurity at select volumes (i.e., how many million dollars of bonds at agiven maturity). This expression would involve the loud oral “cry” of acustomer-proposed bid or offer and the coordination with the fellowrepresentatives regarding the extraction of complimentarypositions—until a transaction match is made and a deal is done. This“trade capture” process relies on after-the-fact reporting of what justtranspired through the oral outcry trade.

Recently, the trade capture process was performed by having designatedclerks input data into electronic input devices. An input clerk wouldattempt to interpret the open outcry of many individual brokerssimultaneously who sequentially are making verbally known their tradinginstructions of their customers. The quality of the data capture was afunction of the interpretative skill of the input clerk, and the volumeand the volatility of customer orders. A significant drawback to thistype of auction data capture process is the difficulty in discerning thedistinct trading instructions verbalized in rapid succession during aquickly moving market, so that an accurate sequence of data can becaptured by brokers and a set of inputters.

The many permutations of this process will be discussed in some detailbelow. At this juncture, suffice to say that at the volumes of businesstransactions existing at the time of its development, and the lack ofsuitable alternatives, left this process as the dominate tradingmechanism for decades. However successful, this approach was notperfect. Indeed, in recent years, some of the problems in a open outcryauction forum have been amplified by the vastly increased level oftrading now undertaken in the fixed income field. Without attempting tobe comprehensive, difficulties would occur by the injection of traderpersonalities into the open outcry auction process. For example, anaggressive—highly vocal representative may in fact dominate trading—andtransaction flow—even though he/she may only represent a smaller andless critical collection of customers. Although such aggressive actionsat open outcry auction may be beneficial to those particular customersin the short run, overall, such dominance of the trading can and willdistort pricing away from the actual market conditions.

Other problems exist in open outcry auction that deplete efficienttrading. The speed at which trading flows and the oral nature of theauction process injects a potential for human error that oftentranslates into many millions of dollars committed to trades unrelatedto customer objectives. As such, the broker is left at the end of eachtrading day with a reconciliation process that may, under certain marketconditions, wipe out all associated profit from that day's trading.Also, customers may quickly change direction regarding trading, based onnew information available to the market. Shifting position or backingout of previously committed transactions on very short notice 1s oftenvery difficult in the traditional open outcry auction process.

First, in brief overview, the present invention is directed to a dataprocessing system for implementing complex trading rules in support ofselect transactions. The first aspect of the invention relates to aparticular hardware arrangement that provides a specifically tailoredplatform for processor enhanced and supported trading. This hardwarearrangement encompasses a plurality of custom designed workstationslinked together for communication. Each workstation is linked to acentral server that orchestrates the trading processes in accordancewith program controlled logic. The workstation includes a display forpresentation of the particulars of trading activity. A customized keypadpermits enhanced data/position entry by the broker.

The second aspect of the invention is the governing logic forcontrolling system dynamics. This logic is stored in system memory andprovides the sequence of protocols and rules that allocate tradingpriority, and the system responses to operative commands entered by thebrokers at the workstations. The system logic is critical on two levels.First, it is important as the guiding principles underlying the systemand thus performance is tied directly thereto. On a second level, systemlogic must be known to all customers and traders as the rules dictatingmarket access and response—to eliminate any confusion and to placeparticipants on as close to an equal footing as possible. It is afundamental precept of the present system to provide fair and completeaccess to the trading process to all registered participants.

To better appreciate the following details, a review of the nomenclatureemployed is recommended. The illustrative examples herein all focus onfixed income instruments and trading of these instruments in largevolumes—with the volume of a given transaction delineated in dollars(e.g., $25 million of 10-year treasuries).

The following terms are used with the associated definition:

TABLE 65A Bid Dollar amount offered to buy a security - issue. OfferDollar amount offered to sell a security - issue. Spread Differencebetween best bid(s) and offer(s) on market. Issue A common class offixed rate treasuries. Hit Accepting a pending bid. Lift Accepting apending offer. Size The volume in dollars of a particular Bid/Offer.Makers Customers with pending offers and bids - making a market.Uncleared Entry Current bids/offers that lack a counterparty, i.e., havenot been lifted or hit. Traders After a trade is initiated; allcustomers involved in transactions (as buyer or seller). Trade A stringof transactions at one price initiated by a hit or lift and continuinguntil timed out or done. Aggressor A customer who initializes a trade.Active Side Group of Makers on same side of market as the Aggressor.Passive Side Group of customers on opposite side of market from theAggressor.

The general context of system operation is based on the repetitiveoperation of several functions, and, in its preferred embodiment,implements these functions through a specially designed keypad.Generally, the process begins when customers contact the brokers andplace bids and offers for a defined class of instruments. These variouspositions are displayed on the computer terminal in specific ways toreflect priority, etc. A customer can establish trading priority byplacing a bid or offer at a select price and volume; bids at the sameprice are displayed on the screen in time order in which they enter thesystem (as are offers). As such a “queue” of bids and offers develops,with place in line set by time at the same price. This queue isdisplayed on screen at the broker's workstation. Typically, there is asmall difference between the bid price and offer price—the “spread”. Ifno difference exists, this is known as a “locked” market.

Importantly, a bid and offer are commitments—once placed, a bid can be“hit” and an offer can be “lifted” by a customer willing to trade theinstrument at the set price.

To control trading between many participating customers, some level ofhierarchy is set. A customer who hits on a bid or lifts an offer ispromoted to a new level known as the “aggressor”. By acting on a bid oroffer, the aggressor defines (and thus establishes) the active side ofthe trade. For example, if the customer hits a bid, selling becomes theactive side of the trade and buying turns passive. However, if thecustomer lifts an offer, buying is active. This is an importantpractical consideration, as by convention the active side payscommissions on the ensuing transactions. This allocation of commissionsis premised on the notion that the active customers are taking advantageof liquidity while the passive side is supplying liquidity to themarket.

For controlled implementation, the above-noted delineation betweenactive and passive sides is important and carries more significance inprocessing transactions than the different sides of the transaction,i.e., the bid and offer.

Focusing further on the nomenclature for the system logic, a “trade” isconsidered a sequence of trading events, triggered by the initial hit orlift that defines the aggressor, and continues for all such transactionsuntil the trade “clears”. During a trade, the aggressor side remainsactive and all transactions take place at the price set by the initialhit or lift—regardless of the number of following transactions. Toproperly track activity, a trade generates a (virtual and/or real)single trade ticket—with associated, and screen-displayed, referencenumber.

Content Channel-Related Web Application Services

As illustrated in FIG. 53 and denoted by reference numeral 5302, anotherembodiment of the present invention is provided for affording acombination of content channel-related web application services. Moredetail is given in FIG. 66. Various features are included such asdownloading data in operation 6600 and transmitting data, such aspush-technology data, based on user specifications in operation 6602. Inoperation 6604, a plurality of newsgroups are also provided to whichusers may subscribe. Content subscriptions are also available. Answersare provided to frequently asked questions (FAQ's) relating to thecontent-related web application services. See operation 6606. Further,in operation 6608, real time communications are enabled between aplurality of users. In use, the transmission of outgoing electronic mailis coordinated and targeted in operation 6610 while incoming electronicmail is manage and organized in operation 6612. A plurality of templatesare provided for publishing data in various forms in operation 6614.

Options include monitoring a success rate of the downloading data andautomatically transmitting the data that is transmitted based on theuser profile. The answers to the frequently asked questions couldinclude answers automatically generated from a dynamic knowledge base ora knowledge expert. Also optionally, the step of coordinating thetransmission of electronic mail includes providing an automatic responsebased upon an external event. The step of organizing received electronicmail could include organizing the received electronic mail based on atext pattern. The received electronic mail could be stored in a dynamiccustomer interaction database. The plurality of templates for publishingdata in various forms may include templates generated based on the userprofile. These options and others will be discussed in more detailbelow.

Download Capabilities

-   Provides common process for all downloads-   Downloads selected files securely-   Tracks success of file downloads-   Restarts download if an error occurs-   Facilitates transactional dependent downloads

The present invention includes several download capabilities. Seeoperation 6600 of FIG. 66. A common process is used for all downloads.Selected files may be downloaded securely and the success of filedownloads are tracked. If an error occurs during downloading, thedownload is restarted. These features greatly facilitate transactionaldependent downloads.

Push Technology Capabilities

-   Sends messages or content to customers proactively-   Allows for delivery and receipt of custom applications developed m    all major languages (i.e. Visual Basic, C++, Java)-   Receives, installs, and launches applications automatically without    user intervention-   Utilizes plug-ins allowing developers to personalize applications    and content-   Performs informal hardware and software audits-   Delivers self-updating applications

Referring to operation 6602 of FIG. 66, push-technology data istransmitted based on user specifications. Preselected messages andcontent may be sent to customers proactively. Furthermore, applicationscould be received, installed, and launched automatically without userintervention. For example, a software update could be automatically sentto a user's computer and installed immediately when it becomesavailable. Also, informal hardware and software audits could beperformed automatically or at predetermined intervals.

Ideally, delivery and receipt of applications developed in a variety ofprogramming languages, such as VISUAL BASIC, C++, and JAVA, is allowed.Plug-ins may also be utilized to allow developers to personalizeapplications and content.

Discussion Forums and Newsgroups

-   Securely handles all media types (e.g. graphics, audio, etc.)-   Links to web pages for easy access to published documents-   Facilitates discussions across multiple discussion groups-   Finds information with search and notification tools-   Allows participation in discussions via email-   Allows forum moderation by users and administrators-   Allows group membership control by users and administrators

Operation 6604 of FIG. 66 provides for a plurality of newsgroups towhich users can subscribe. Sending and receipt of all media types,including graphics, audio, streaming video, and the like is permitted. Auser may also participate in discussions via email. Selected users or anadministrator may also be allowed to moderate a forum discussion as wellas limit and control membership in a group.

An interface could be provided that permits discussions across multiplediscussion groups. Optionally, links to web pages may be selected toaccess related sites and published documents. Also, search capabilitiescould be provided to search for information. Notification tools mayinform a user of various events, such as when a particular discussion isgoing to occur.

Content Subscriptions

-   Allows users to subscribe and unsubscribe for different services-   Allows subscribers to set up content preferences (e.g. topics)-   Allows users to subscribe third parties for services

The content channels component of the present invention allows users tosubscribe and unsubscribe to different services such as, for example,newsletters, travel clubs, and the like. Users would also be allowed tolimit the content of the materials received to their particularpreference. For example, a user would select several topics from a listof topics and would later receive information on the selected topics.Optionally, the invention could permit a user to subscribe third partiesto selected services.

Frequently Asked Questions

-   Displays static answers to popular questions-   Dynamically generates questions and answers from a knowledge base-   Tracks knowledge experts based on content authors and discussion    forum participation

Referring to operation 6606 of FIG. 66, the content channels componentof the present invention would also include a component for displayingstatic answers to popular questions. The questions and answers could bedynamically generated from a knowledge base. Optionally, the questionsand answers could be ranked in order from the most to the least viewedor vice versa or could be organized by topic. Also optionally, a searchengine could select relevant questions based on a user's input criteria.

Chat Capabilities in Real Time

-   Provides public and private messages-   Provides Collaborative Web touring, URL pasting-   Allows dynamic (public/private) room creation-   Notifies users if another user is on-line-   Provides free form discussion area-   Allows for moderated chat sessions

Chat capabilities could be included in the content channels component ofthe present invention. Note operation 6608 of FIG. 66. Such capabilitieswould permit collaborative web touring and URL pasting, for such thingsas permitting two or more users to simultaneously navigate the web. Theinvention may notify a user when another user is online. Further, chatrooms could be dynamically created which could restrict access to knownusers or could permit open public access. Moderated chat sessions wouldalso be allowed. Optionally, the chat capabilities could permit postingand retrieving of public and private messages, such as on electronicbulletin boards.

Generate Coordinated and Targeted Messages (Outbound E-Mail)

-   Targets e-mails to visitors based on profile and category system-   Logs and tracks outbound messages-   Automates regular communication triggered by events-   Tracks email responses for campaign management statistics

In operation 6610, shown in FIG. 66, the content channels component ofthe present invention also permits generation of messages which may besent to selected users at predetermined times or automatically uponoccurrence of a particular event. The users may sign up to receive themessages, or they may be selected based on user profiles or a categorysystem. All outbound messages are logged and tracked, as are anyresponses to those messages.

Manage E-Mail Receipt and Delivery (Inbound E-Mail)

-   Offers automated responses to consumer's questions-   Logs and tracks incoming messages-   Classifies messages based on text patterns and routes them to the    appropriate departments-   Stores messages to build customer interaction histories-   Queues messages in mailboxes for response-   Facilitates review and response process

Inbound e-mail is managed in operation 6612 of FIG. 66. All incomingmessages are logged, tracked, sorted based on text patterns, and routedto the appropriate destination. For some messages, automated responsesmay be sent. Other messages would be queued in mailboxes for response.All or selected messages may be stored to build a customer interactionhistory.

Dynamic Rendering

-   Displays content and applications based on profile-   Pulls content from multiple data sources; static, database, third    party site-   Matches content to users via configurable business rules-   Allows custom template based publishing

The content channels component of the present invention also providesfor generic and custom template based publishing by displaying selectedcontent and applications based on the profile of a user. Note operation6614 of FIG. 66. Content is obtained from multiple data sources,including static, database, and third party sites. Optionally, thecontent may be matched to particular users via configurable businessrules.

Administrative and Financial Web Application Services

Another embodiment of the present invention is provided for affording acombination of web application services to manage administration of theweb application services. See component 5304 of FIG. 53A. To accomplishthis, information on employment opportunities is managed and organized.Further, information relating to the stock markets and corporatefinancial information is output. Information on legal services is alsoprovided;

Online Recruiting

-   Displays job listings and contact numbers-   Provides forms to enter resources-   Accepts and stores resumes submitted-   Routes resumes to appropriate department-   Lists job interviews and campus recruiting dates-   Describes open opportunities and facilitates matching potential    employees to positions

The administrative component of the present invention provides foronline recruiting and job searching. Job listings and contactinformation are provided, as are forms to enter resources. Also listedare interview times and locations as well as campus recruiting dates.Resumes are accepted and stored to be later accessed by potentialemployers, or are routed to an appropriate destination. The resumes maybe sorted based on keyword search or area of expertise, or may only berouted to certain destinations selected by the users submitting theresumes.

Shareholder Services

-   Provides personalized stock tickers-   Displays corporate financial information

The content channels component of the present invention provides acustomizable display including personalized stock tickers, links tocorporate financial information, and an online brokerage service. Othershareholder services could include historical graphing of theperformance of stocks over time.

Legal Services

-   Lists legal policies and notifications (privacy policy)-   Accepts notification of legal questions or issues-   Provides media kits-   Allows users to register for branding usage

Legal notices and policies are displayed by the content channelscomponent of the present invention. Legal questions and issues areaccepted and stored for later reply. A user is also allowed to registerfor branding usage. Media kits may be provided.

Web Application Services to Manage Customer Relationships

As shown in component 5306 of FIG. 53A, one embodiment of the presentinvention is provided for affording a combination of web applicationservices to manage customer relationships. FIG. 67 illustrates component5306 in more detail. As shown in FIG. 67, profile data of a plurality ofusers is managed and organized in operation 6700. Static and dynamicinformation of interest is provided to each user based on profile dataof that user in operation 6704. Further, static and dynamic informationof interest is provided to a plurality of users having similar profiledata in operation 6704. Information is also located on a network ofdatabases, i.e. the Internet, as a function of the profile data.Feedback is also collected from the users by way of electronic forms andsurveys Note operation 6706. Various event, calendaring and registrationservices are further provided. For example, operation 6708 reminds theusers of upcoming events, a calendar of events is maintained, and theusers are permitted to register for the events.

User Profile Management (Active Profiling)

-   Displays and maintains user information and preferences-   Integrates with centralized source for profiles-   Allows users or administrators to modify profiles

One embodiment of the present invention is provided for utilizing alluser indicia for the purpose of customizing a user interface. Noteoperation 6700 of FIG. 67. In use, a user profile is developed inoperation 6800 of FIG. 68. Such user indicia may include any of searchrequests, products purchased, products looked at but not purchased,products purchased and returned, reasons for returning products,customer stated profile including income level, education level, statedprofession, etc. as well as preferences of the user. FIG. 23Billustrates one method for developing a user profile. In operation 6900,user information such as search requests, shopping events, and browsinghabits may be collected by the system or by the user's computer forperiodic download to the system. All of the user information would beplaced in a database in operation 6901 for retrieval when necessary.Thus, a user's buying pattern for a particular type of item can bereadily estimated with relative surety in operation 6902 each time auser uses the system. Further, the user's current activities can belogged and entered into the database in operation 6903, thereby ensuringup to the minute accuracy. In operation 6801, an item for purchase witha set of features is selected based on the user profile and isdisplayed. The item may be selected from a group of items havingcharacteristics that corresponds to a predicted buying pattern of theuser. The presentation of the set of features is customized based on theuser profile in operation 6802. The user is allowed to select the itemfor purchase. See operation 6803.

For example, the present system is capable of telling that the user wason the IT staff for an accounting firm and was reviewing software forpurchase such that, when he drills down through product details on anecommerce website, it would highlight first the software and hardwareperformance/requirements specs and next the return on investment. At ahigher level, with the same customer, if he were searching for a wordprocessor software, then the profile would present a review of the bestsoftware for accounting firms as written up in some accounting magazine.It might also compare what similar IT professionals from accountingfirms purchased.

Dynamically Facilitate Communities of Interest

-   Provides static content and applications to people with similar    preferences or business needs-   Provides dynamic content and applications to people with similar    preferences or business needs-   Communities can be created by configurable business rules

The customer relationship management component of the present invention,in operation 6702, provides static content and applications to peoplewith similar preferences and business needs. Dynamic content isprovided, as are applications, to people with similar preferences andbusiness needs.

Match Web Content to Specific User Profiles

-   Permits cross- and up-sell of products to customers based on user    profile-   Offers personalized recommendations based on an individual's profile-   Targets content and advertisements based on an individual's profile-   Relates legacy databases and information to personal profile    information-   Content matching rules are defined by configurable business rules-   Uses metadata and business rules to match content to profiles

The customer relationship management component of the present inventionpermits matching of web content and advertisements to specific userprofiles. Note operation 6704 of FIG. 67. Personalized recommendationsare made based on the profile of a user. Cross- and up-selling ofproducts to users based on their profiles is also permitted. Optionally,content matching rules are defined by configurable business rules. Inthe alternative, metadata and business rules match content to profiles.Also optionally, legacy databases and information may be related topersonal profile information.

Customer Feedback and Surveys

-   Automates creation and administration of online feedback forms-   Allows internal users to access results from web browsers-   Builds and maintains multiple feedback forms and surveys-   Delivers and automatically processes interactive online forms-   Displays and analyzes real time survey reports in text and graphic    format-   Downloads collected information for offline needs

The customer relationship management component of the present inventionalso receives customer feedback and takes surveys in operation 6706.Creation, administration, and maintenance of multiple online feedbackforms and surveys 1s automated, as is delivery and processing of theforms and surveys. Internal users are allowed to access results from webbrowsers. Survey results are analyzed and displayed in text and graphicformat. Optionally, users may be permitted to view current surveyresults, such as reports. Finally, collected information may bedownloaded for offline needs.

Events, Calendaring, and Registration

-   Offers user the ability to view upcoming events and register for    them online-   Checks identity of user to authorize registration-   Checks for relevant events based on user profiles and notifies users-   Sends out notices to remind users of upcoming events for which user    has registered-   Maintains calendar of events and administration of calendar-   Integrates with commerce functions to provide fee-based registration    capabilities (e.g. online registration via credit card)

Referring to operations 6708, 6800, and 6802 of FIGS. 67 and 68, thecustomer relationship management component of the present inventionincludes a calendar of events, a notification service, and a way toregister for upcoming events. Relevant events are selected based on theprofile of a user and the user is notified of the time and place of theevent. Once the identity of a user has been verified, the registrationof the user is accepted. A notice is sent to a user to remind the userof the event for which he or she has registered. The registrationfunction is integrated with commerce functions to permit fee-basedregistration capabilities, such as permitting online registration viacredit card.

Content Management and Publishing-Related Web Application Services

-   Stores current files along with past changes to documents, source    code, and Web content-   Assigns user-specific and project specific authorization for secure    administration-   Reconciles file changes from multiple users and prevents accidental    code overwriting-   Generates site maps-   Maintains metadata for content

One embodiment of the present invention, illustrated in FIG. 53A ascomponent 5308, is provided for affording a combination of contentmanagement and publishing-related web application services. In use,referring to FIG. 70, content of a data interface. i.e. a web-site, maybe developed for accessing data on a network, i.e. the Internet, afterwhich such content is managed in operation. Note operations 7000 and7002, respectively. Publishing of the content of the data interface iscontrolled by precluding transmission or publication of the contentuntil approval in operation 7004. The content of the data interface mayalso be tested in operation 7006. For example, this may be accomplishedby creating a staging and deployment environment in which the datainterface is analyzed. Further features include “text-only” renderingand content workflow control.

As an option, the step of developing content of a data interface may becarried out by a data version controller. A content developer may beautomatically notified of a work assignment. Managing the content mayinclude assigning a secure access for specific users and specificprojects. Meta data could be maintained and language translation toolscould be utilized. Approving the publication of the content may includeassigning use and access restrictions on the content. Testing thecontent of the data interface may include comparing versions of the datainterface and utilizing remote and automatic testing capabilities.

Controlling Electronic Content

A fundamental problem for electronic content providers is extendingtheir ability to control the use of proprietary information. Contentproviders often need to limit use to authorized activities and amounts.Participants in a business model involving, for example, provision ofmovies and advertising on optical discs may include actors, directors,script and other writers, musicians, studios, publishers, distributors,retailers, advertisers, credit card services, and content end-users.These participants need the ability to embody their range of agreementsand requirements, including use limitations, into an “extended”agreement comprising an overall electronic business model. This extendedagreement is represented by electronic content control information thatcan automatically enforce agreed upon rights and obligations. Under WAF,such an extended agreement may comprise an electronic contract involvingall business model participants. Such an agreement may alternatively, orin addition, be made up of electronic agreements between subsets of thebusiness model participants. Through the use of WAF, electronic commercecan function in the same way as traditional commerce—that is commercialrelationships regarding products and services can be shaped through thenegotiation of one or more agreements between a variety of parties.

Commercial content providers are concerned with ensuring propercompensation for the use of their electronic information. Electronicdigital information, for example a CD recording, can today be copiedrelatively easily and inexpensively. Similarly, unauthorized copying anduse of software programs deprives rightful owners of billions of dollarsin annual revenue according to the International Intellectual PropertyAlliance. Content providers and distributors have devised a number oflimited function rights protection mechanisms to protect their rights.Authorization passwords and protocols, license servers, “lock/unlock”distribution methods, and non-electronic contractual limitations imposedon users of shrink-wrapped software are a few of the more prevalentcontent protection schemes. In a commercial context, these efforts areinefficient and limited solutions.

Providers of “electronic currency” have also created protections fortheir type of content. These systems are not sufficiently adaptable,efficient, nor flexible enough to support the generalized use ofelectronic currency. Furthermore, they do not provide sophisticatedauditing and control configuration capabilities. This means that currentelectronic currency tools lack the sophistication needed for manyreal-world financial business models. WAF provides means for anonymouscurrency and for “conditionally” anonymous currency, wherein currencyrelated activities remain anonymous except under special circumstances.

WAF Control Capabilities

WAF allows the owners and distributors of electronic digital informationto reliably bill for, and securely control, audit, and budget the useof, electronic information. It can reliably detect and monitor the useof commercial information products. WAF uses a wide variety of differentelectronic information delivery means: including, for example, digitalnetworks, digital broadcast, and physical storage media such as opticaland magnetic disks. WAF can be used by major network providers, hardwaremanufacturers, owners of electronic information, providers of suchinformation, and clearinghouses that gather usage information regarding,and bill for the use of, electronic information.

WAF provides comprehensive and configurable transaction management,metering and monitoring technology. It can change how electronicinformation products are protected, marketed, packaged, and distributed.When used, WAF should result in higher revenues for informationproviders and greater user satisfaction and value. Use of WAF willnormally result in lower usage costs, decreased transaction costs, moreefficient access to electronic information, re-usability of rightsprotection and other transaction management implementations, greatlyimproved flexibility in the use of secured information, and greaterstandardization of tools and processes for electronic transactionmanagement. WAF can be used to create an adaptable environment thatfulfills the needs of electronic information owners, distributors, andusers; financial clearinghouses; and usage information analyzers andresellers.

WAF provides a secure, distributed electronic transaction managementsystem for controlling the distribution and/or other usage ofelectronically provided and/or stored information. WAF controls auditingand reporting of electronic content and/or appliance usage. Users of WAFmay include content creators who apply content usage, usage reporting,and/or usage payment related control information to electronic contentand/or appliances for users such as end-user organizations, individuals,and content and/or appliance distributors. WAF also securely supportsthe payment of money owed (including money owed for content and/orappliance usage) by one or more parties to one or more other parties, inthe form of electronic credit and/or currency.

WAF may be used to migrate most non-electronic, traditional informationdelivery models (including entertainment, reference materials, catalogshopping, etc.) into an adequately secure digital distribution and usagemanagement and payment context. The distribution and financial pathwaysmanaged by a WAF arrangement may include:

-   content creator(s),-   distributor(s),-   redistributor(s),-   client administrator(s),-   client user(s),-   financial and/or other clearinghouse(s),-   and/or government agencies.

These distribution and financial pathways may also include:

-   advertisers,-   market survey organizations, and/or-   other parties interested in the user usage of information securely    delivered and/or stored using WAF.

Normally, participants in a WAF arrangement will employ the same secureWAF foundation. Alternate embodiments support WAF arrangements employingdiffering WAF foundations. Such alternate embodiments may employprocedures to ensure certain interoperability requirements are met.

Because of the breadth of issues resolved by the present invention, itcan provide the emerging “electronic highway” with a singletransaction/distribution control system that can, for a very broad rangeof commercial and data security models, ensure against unauthorized useof confidential and/or proprietary information and commercial electronictransactions. WAF's electronic transaction management mechanisms canenforce the electronic rights and agreements of all partiesparticipating in widely varying business and data security models, andthis can be efficiently achieved through a single WAF implementationwithin each WAF participant's electronic appliance. WAF supports widelyvarying business and/or data security models that can involve a broadrange of participants at various “levels” of WAF content and/or contentcontrol information pathways of handling. Different content controland/or auditing models and agreements may be available on the same WAFinstallation. These models and agreements may control content inrelationship to, for example, WAF installations and/or users in general;certain specific users, installations, classes and/or other groupings ofinstallations and/or users; as well as to electronic content generallyon a given installation, to specific properties, property portions,classes and/or other groupings of content.

Distribution using WAF may package both the electronic content andcontrol information into the same WAF container, and/or may involve thedelivery to an end-user site of different pieces of the same WAF managedproperty from plural separate remote locations and/or in plural separateWAF content containers and/or employing plural different delivery means.Content control information may be partially or fully deliveredseparately from its associated content to a user WAF installation in oneor more WAF administrative objects. Portions of said control informationmay be delivered from one or more sources. Control information may alsobe available for use by access from a user's WAF installation securesub-system to one or more remote WAF secure sub-systems and/or WAFcompatible, certified secure remote locations. WAF control processessuch as metering, budgeting, decrypting and/or fingerprinting, may asrelates to a certain user content usage activity, be performed in auser's local WAF installation secure subsystem, or said processes may bedivided amongst plural secure subsystems which may be located in thesame user WAF installations and/or in a network server and in the userinstallation. For example, a local WAF installation may performdecryption and save any, or all of, usage metering information relatedto content and/or electronic appliance usage at such user installationcould be performed at the server employing secure (e.g., encrypted)communications between said secure subsystems. Said server location mayalso be used for near real time, frequent, or more periodic securereceipt of content usage information from said user installation, with,for example, metered information being maintained only temporarily at alocal user installation.

Delivery means for WAF managed content may include electronic datastorage means such as optical disks for delivering one portion of saidinformation and broadcasting and/or telecommunicating means for otherportions of said information. Electronic data storage means may includemagnetic media, optical media, combined magneto-optical systems, flashRAM memory, bubble memory, and/or other memory storage means such ashuge capacity optical storage systems employing holographic, frequency,and/or polarity data storage techniques. Data storage means may alsoemploy layered disc techniques, such as the use of generally transparentand/or translucent materials that pass light through layers of datacarrying discs which themselves are physically packaged together as onethicker disc. Data carrying locations on such discs may be, at least mpart, opaque.

WAF control information (e.g., methods) that collectively control use ofWAF managed properties (database, document, individual commercialproduct), are either shipped with the content itself (for example, in acontent container) and/or one or more portions of such controlinformation is shipped to distributors and/or other users in separablydeliverable “administrative objects.” A subset of the methods for aproperty may in part be delivered with each property while one or moreother subsets of methods can be delivered separately to a user orotherwise made available for use (such as being available remotely bytelecommunication means). Required methods (methods listed as requiredfor property and/or appliance use) must be available as specified if WAFcontrolled content (such as intellectual property distributed within aWAF content container) is to be used. Methods that control content mayapply to a plurality of WAF container objects, such as a class or othergrouping of such objects. Methods may also be required by certain usersor classes of users and/or WAF installations and/or classes ofinstallations for such parties to use one or more specific, or classesof, objects.

A feature of WAF provided by the present invention is that certain oneor more methods can be specified as required in order for a WAFinstallation and/or user to be able to use certain and/or all content.For example, a distributor of a certain type of content might be allowedby “senior” participants (by content creators, for example) to require amethod which prohibits end-users from electronically saving decryptedcontent, a provider of credit for WAF transactions might require anaudit method that records the time of an electronic purchase, and/or auser might require a method that summarizes usage information forreporting to a clearinghouse (e.g. billing information) m a way thatdoes not convey confidential, personal information regarding detailedusage behavior.

A further feature of WAF provided by the present invention is thatcreators, distributors, and users of content can select from among a setof predefined methods (if available) to control container content usageand distribution functions and/or they may have the right to provide newcustomized methods to control at least certain usage functions (such“new” methods may be required to be certified for trustedness andinteroperability to the WAF installation and/or for of a group of WAFapplications). As a result, WAF provides a very high degree ofconfigurability with respect to how the distribution and other usage ofeach property or object (or one or more portions of objects orproperties as desired and/or applicable) will be controlled. Each WAFparticipant in a WAF pathway of content control information may setmethods for some or all of the content in a WAF container, so long assuch control information does not conflict with senior controlinformation already in place with respect to:

-   (1) certain or all WAF managed content,-   (2) certain one or more WAF users and/or groupings of users,-   (3) certain one or more WAF nodes and/or groupings of nodes, and/or-   (4) certain one or more WAF applications and/or arrangements.

For example, a content creator's WAF control information for certaincontent can take precedence over other submitted. WAF participantcontrol information and, for example, if allowed by senior controlinformation, a content distributor's control information may itself takeprecedence over a client administrator's control information, which maytake precedence over an end-user's control information. A path ofdistribution participant's ability to set such electronic contentcontrol information can be limited to certain control information (forexample, method mediating data such as pricing and/or sales dates) or itmay be limited only to the extent that one or more of the participant'sproposed control information conflicts with control information set bysenior control information submitted previously by participants in achain of handling of the property, or managed in said participant's WAFsecure subsystem.

WAF control information may, in part or in full, (a) represent controlinformation directly put in place by WAF content control informationpathway participants, and/or (b) comprise control information put inplace by such a participant on behalf of a party who does not directlyhandle electronic content (or electronic appliance) permissions recordsinformation (for example control information inserted by a participanton behalf of a financial clearinghouse or government agency). Suchcontrol information methods (and/or load modules and/or mediating dataand/or component assemblies) may also be put in place by either anelectronic automated, or a semi-automated and human assisted, controlinformation (control set) negotiating process that assesses whether theuse of one or more pieces of submitted control information will beintegrated into and/or replace existing control information (and/orchooses between alternative control information based upon interactionwith in-place control information) and how such control information maybe used.

Control information may be provided by a party who does not directlyparticipate in the handling of electronic content (and/or appliance)and/or control information for such content (and/or appliance). Suchcontrol information may be provided in secure form using WAFinstallation secure sub-system managed communications (including, forexample, authenticating the deliverer of at least in part encryptedcontrol information) between such not directly participating one or moreparties' WAF installation secure subsystems, and a pathway of WAFcontent control information participant's WAF installation securesubsystem. This control information may relate to, for example, theright to access credit supplied by a financial services provider, theenforcement of regulations or laws enacted by a government agency, orthe requirements of a customer of WAF managed content usage information(reflecting usage of content by one or more parties other than suchcustomer) relating to the creation, handling and/or manner of reportingof usage information received by such customer. Such control informationmay, for example, enforce societal requirements such as laws related toelectronic commerce.

WAF content control information may apply differently to differentpathway of content and/or control information handling participants.Furthermore, permissions records rights may be added, altered, and/orremoved by a WAF participant if they are allowed to take such action.Rights of WAF participants may be defined in relation to specificparties and or categories of parties and/or other groups of parties in achain of handling of content and/or content control information (e.g.,permissions records). Modifications to control information that may bemade by a given, eligible party or parties, may be limited in the numberof modifications, and/or degree of modification, they may make.

At least one secure subsystem in electronic appliances of creators,distributors, auditors, clearinghouses, client administrators, andend-users (understanding that two or more of the above classificationsmay describe a single user) provides a “sufficiently” secure (for theintended applications) environment for:

-   1. Decrypting properties and control information;-   2. Storing control and metering related information;-   3. Managing communications;-   4. Processing core control programs, along with associated data,    that constitute control information for electronic content and/or    appliance rights protection, including the enforcing of preferences    and requirements of WAF participants.

Normally, most usage, audit, reporting, payment, and distributioncontrol methods are themselves at least in part encrypted and areexecuted by the secure subsystem of a WAF installation. Thus, forexample, billing and metering records can be securely generated andupdated, and encryption and decryption keys are securely utilized,within a secure subsystem. Since WAF also employs secure (e.g. encryptedand authenticated) communications when passing information between theparticipant location (nodes) secure subsystems of a WAF arrangement,important components of a WAF electronic agreement can be reliablyenforced with sufficient security (sufficiently trusted) for theintended commercial purposes. A WAF electronic agreement for a valuechain can be composed, at least in part, of one or more subagreementsbetween one or more subsets of the value chain participants. Thesesubagreements are comprised of one or more electronic contract“compliance” elements (methods including associated parameter data) thatensure the protection of the rights of WAF participants.

The degree of trustedness of a WAF arrangement will be primarily basedon whether hardware SPUs are employed at participant location securesubsystems and the effectiveness of the SPU hardware securityarchitecture, software security techniques when an SPU is emulated insoftware, and the encryption algorithm(s) and keys that are employed forsecuring content, control information, communications, and access to WAFnode (WAF installation) secure subsystems. Physical facility and useridentity authentication security procedures may be used instead ofhardware SPUs at certain nodes, such as at an established financialclearinghouse, where such procedures may provide sufficient security fortrusted interoperability with a WAF arrangement employing hardware SPUsat user nodes.

The updating of property management files at each location of a WAFarrangement, to accommodate new or modified control information, isperformed in the WAF secure subsystem and under the control of securemanagement file updating programs executed by the protected subsystem.Since all secure communications are at least in part encrypted and theprocessing inside the secure subsystem is concealed from outsideobservation and interference, the present invention ensures that contentcontrol information can be enforced. As a result, the creator and/ordistributor and/or client administrator and/or other contributor ofsecure control information for each property (for example, an end-userrestricting the kind of audit information he or she will allow to bereported and/or a financial clearinghouse establishing certain criteriafor use of its credit for payment for use of distributed content) can beconfident that their contributed and accepted control information willbe enforced (within the security limitations of a given WAF securityimplementation design). This control information can determine, forexample:

-   (1) How and/or to whom electronic content can be provided, for    example, how an electronic property can be distributed;-   (2) How one or more objects and/or properties, or portions of an    object or property, can be directly used, such as decrypted,    displayed, printed, etc;-   (3) How payment for usage of such content and/or content portions    may or must be handled; and-   (4) How audit information about usage information related to at    least a portion of a property should be collected, reported, and/or    used.

Seniority of contributed control information, including resolution ofconflicts between content control information submitted by multipleparties, is normally established by:

-   (1) the sequence in which control information is put in place by    various parties (in place control information normally takes    precedence over subsequently submitted control information),-   (2) the specifics of WAF content and/or appliance control    information. For example, in-place control information can stipulate    which subsequent one or more piece of control from one or more    parties or class of parties will take precedence over control    information submitted by one or more yet different parties and/or    classes of parties, and/or-   (3) negotiation between control information set, from plural    parties, which negotiation establishes what control information    shall constitute the resulting control information set for a given    piece of WAF managed content and/or WAF installation.    Content Development Tools-   Shows view of site's navigational structure, directories of    information, hyperlinks, hyperlink status, or all files at once-   Provides automatic hyperlink maintenance-   Creates WYSIWYG frames pages and draws HTML, tables-   Supports editing of graphics-   Generates web sites and pages from predefined formats-   Imports existing files or folders into web site-   Integrates with version control tools-   Allows metadata editing and definition

Operation 700 of the content management and publishing servicescomponent of the present invention provides tools for developing contentof a data interface for accessing data on a network. In particular, aview of the navigational structure, directories of information,hyperlinks, hyperlink status, or all files of the site is shown.Hyperlinks may be maintained automatically. Graphics editing issupported. Predefined formats may be provided to assist in generatingweb sites and pages. Optionally, WYSIWYG frames pages may be created andHTML tables may be drawn. Also optionally, metadata editing anddefinition may be allowed. Existing files or folders may be importedinto a web site. Ideally, the content management and publishing servicescomponent of the present invention integrates with version controltools.

Content Management Capabilities

The content management and publishing services component of the presentinvention also manages the content and security of the data interface.Note operation 7002 of FIG. 70. Current files are stored along with pastchanges to documents, source code, and web content. User specific andproject specific authorization is assigned to ensure secureadministration. File changes among multiple users are reconciled so thataccidental code overwriting is avoided. Site maps are generated andmetadata is maintained for content.

Content Approval

-   Controls access to content publishing-   Permits publishing of material only after approval-   Notifies approver of material to review-   Describes the business rules for syndication, including who can have    it, when, for how long, and any restrictions on use or reuse of the    digital asset

Operation 7004 of the content management and publishing servicescomponent of the present invention precludes publishing of the contentof the data interface until approval so that access to contentpublishing is controlled. The administrator who approves the content isnotified of the new content so that he or she may review the content.Optionally, the business rules for syndication are set forth, includingproprietary rights, beginning date and duration of those rights, and anyrestrictions on use and reuse.

Content Workflow

-   Generates site maps based on collection of stored web pages-   Provides content workflow view to all developers-   Allows content managers to change content workflow-   Provides change request and change notification routing-   Alerts developers of changes in content workflow-   Manages large numbers of sub-projects and organizes them into groups-   Allows sub-projects to automatically and remotely download available    digital assets and remotely change them over time-   Allows developers to group content for particular sub-projects-   Alerts developers of content in work queue-   Allows routing of content to multiple parties

The content management and publishing services component of the presentinvention controls the content workflow. Site maps are generated basedon a collection of stored web pages which, along with content workflowview, is provided to developers. Content managers are allowed to changecontent workflow and group content for particular sub projects. Changerequests may also be submitted and change notifications are routed toappropriate destinations. Developers are alerted to changes in contentworkflow as well as the contents of the work queue.

Large numbers of sub-projects are managed and organized into groups. Thesub-projects are then allowed to automatically and remotely downloadavailable digital assets and remotely change them over time.

Content Review and Testing Tools

-   Provides ability to preview content-   Compares the differences in a project against another project, or in    two different folders-   Provides data-driven testing capabilities-   Allows script maintenance and reuse-   Reports where errors are found-   Enables remote and timed testing capabilities-   Supports multiple source and destination environments

The content of the data interface is tested in operation 7006. Thecontent is able to be previewed so that any errors or inconsistenciescan be fixed. Also provided are data-driven testing capabilities.Further, remote testing, periodic testing, and durational testing may beperformed. When an error is found, a report is output.

Optionally, two or more projects may be compared to determine thedifferences between the two. Likewise, data stored in two or moredifferent folders may also be compared. Also optionally, scripts aretested and maintained, and can be reused. Further, support is providedfor multiple source and destination environments.

Localization and Translation Capabilities

-   Provides translation services from single to entire web sites,    text-embedded in images, Java and Javascript source code and    parameters, CGI scripts, Database files, Email, Adobe PDF files-   Enables site update and maintenance procedures for localization-   Alerts local web site content managers to changes in web site-   Tracks localization process

The content management and publishing services component also includeslocalization and translation capabilities in operation 7008. Siteupdates and maintenance procedures for localization are enabled, and thelocalization process is tracked. The local web site content manager isalerted to any change in the web site. Also, translation services areprovided for single pages to entire web sites. For example, thetranslation services translate text embedded in images, JAVA, JAVASCRIPTsource code and parameters, CGI scripts, database files, email, andADOBE PDF files to and from each other.

Text Only Rendering Capabilities

-   Facilitates “text-only” site rendering based on business rules-   Allows modification/customization of text-only pages

The content management and publishing services component facilitates“text-only” site rendering based on business rules, particularly usefulfor users with low end systems or without graphics displayingcapabilities. This also simplifies modification and customization oftext-only pages.

Staging and Deployment Tools

-   Creates staging and deployment environments to test content in a    mirrored production environment prior to deployment-   Provides ability to release content based on time-   Allows the ability to roll-back to a previous production version-   Integrates with content approval process-   Provides load, regression and performance testing capabilities

The content management and publishing services component of the presentinvention creates an environment in which the content of the data istested. This testing may be carried out by creating a staging anddeployment environment in a mirrored production environment prior todeployment. Exemplary testing capabilities include load, regression, andperformance testing capabilities. If a problem arises, a previousproduction version may be put back into use. Further, content may bereleased over time. Optionally, the testing environment may beintegrated with the content approval process to ensure compliance withcontent guidelines before actual deployment of the content.

Education-Related Web Application Services

One embodiment of the present invention is provided for affording acombination of education-related web application services, illustratedas component 5310 of FIG. 53. FIG. 71 provides more detail. Inoperations 7100 and 7102 respectively, a curriculum of course offeringsis generated from which users are permitted to select, i.e. order,register, etc. Education such as training or the like is carried outover a network such as the Internet in operation 7104. At any giventime, a status of the education may be provided, including such thingsas a listing of the courses completed, scores for the courses completed,a listing of courses for which currently enrolled and the current scoresin those courses, a listing of courses required to matriculate, etc.Note operation 7106.

Many school systems have become highly centralized. Large schools haveevolved, which serve wide geographic areas. The geographic area coveredby some schools is so wide that certain students must make a round tripof one hundred miles, or more, to attend classes.

One benefit of a large, centralized school is that a vast, diversecurriculum can be offered. It is desirable to offer the diversecurriculum, without imposing the long-distance travel on students.

In one form of the invention, a system of computers store lessons whichare transmitted to computers used by students. At intervals, theinvention assess the students' progress, and selects appropriate lessonsfor the student at the time.

Highly Simplified Overview

REPOSITORIES hold educational computer programs. Students obtain accessto the programs needed, via the NETWORK indicated. The programs instructthe students in an interactive manner.

The students need not be present at the REPOSITORIES, but stationthemselves at convenient locations, such as their homes, therebyeliminating the need to travel to a physical facility to attend classes.

The Educational Programs

The teaching programs themselves are commercially available, and newprograms will be developed as systems such as the present inventionbecome more widely implemented.

Programs which test students, in order to determine the students' masterof material, are also commercially available.

The invention provides several highly innovative features whichsignificantly enhance the effectiveness of these teaching programs andtesting programs.

Profiles

One is that a PROFILE is generated for each student. PROFILES arediscussed in the Related Applications. As adapted to the presentinvention, the PROFILE is, in simple terms, a description of (a) thepresent educational status, (b) the educational needs and (c) theeducational capabilities, of the student.

Educational Status

Educational status refers to the student's present position in thestudent's educational career. For example, third-month, secondary-schoolfreshman is one status.

The invention uses the educational status in deciding what material topresent the student at a given time, as discussed more fully below.

Educational Needs

Educational needs refer to the instruction needed by the student at thetime, which is largely determined by the student's curriculum. Forexample, the lessons needed by a college sophomore having a curriculumof college chemistry, with emphasis on organic synthesis, are known.

Educational Characteristics

Educational characteristics refer to the manner of teaching to which thestudent best responds. That is, the invention identifies learningcharacteristics of each student, and presents material m a mannercompatible with the characteristics.

As a simple example, some students can understand the PythagoreanTheorem directly from its mathematical statement, namely,hypotenuse.sup.2=side1.sup.2+side2.sup.2.

Other students do not obtain information from such an abstractstatement, and must see the Theorem applied to specific examples beforethey understand it.

The preferred learning styles are ascertained by a combination ofstudent-counselor interviews, computer-assisted examination of thestudent, and standard psychological assessment.

The invention uses the PROFILES to select material to present to thestudent during each session. The PROFILE is updated, if required, ateach students' learning session, to indicate progress made during thesession. This updating is automatic, and done non-intrusively.

Different Presentation of Given Lesson

The invention includes educational programs which present a given lessonin different ways, in order to accommodate the fact that differentstudents assimilate material in different ways. This collection ofdifferent presentations allows implementation of two teachingapproaches.

1. Different Presentations of SAME Lesson for DIFFERENT Students

As discussed immediately above, because different students havedifferent learning characteristics, the invention selects a suitablemanner of presentation from the collection, based on the learningcharacteristics of the student. The selection is made based on thePROFILE.

2. Different Presentations of SAME Lesson for SAME Student

The collection of presentations can be used to offer differentpresentations to a given student, if the student fails to master alesson when presented the first time. Three reasons exist which indicatethat this approach may be desirable.

One, it is expected that a given student does not maintain constantlearning characteristics at all times.

Two, the characterization of learning style of a student is not aperfect science. Thus, even if the learning characteristics neverchange, it is not clear that a perfect match can always be made betweena style of presentation and the learning characteristics of the student.

Three, even if the classification of learning style becomes perfected,the subject matter of some lessons may not be amenable to the learningstyle preferred by the student. For example, there exists a “left-brain,right-brain” conception of human thinking, wherein the left-brain isbelieved to manage logic, and the right-brain manages creativity andImagery.

For a “right-brain” student, there may exist no directly compatibleteaching strategy for explaining “left-brain” subject matter. Forinstance, there may be no perfectly compatible teaching strategy toexplain the principles of artistic color theory to a right-brain studentundertaking a curriculum of nuclear physics.

Therefore, the invention presents a given lesson in successive,different ways, if the student does not master the lesson the firsttime.

Subject Matter Expert

If a student fails to demonstrate mastery of a lesson after a prescribednumber of attempts, the invention establishes a video conference betweenthe student and a SUBJECT MATTER EXPERT. The SUBJECT MATTER EXPERT is aconsultant who is expert in the subject matter of the lesson causingdifficulty. The video conference allows the SUBJECT MATTER EXPERT toidentify the difficulties encountered by the student, and to offercoaching.

Establishment of the video conference is allowed by commerciallyavailable systems, such as the CLS system described below, and alsodescribed m the Related Applications.

CLS places no geographic restriction on the location of the SUBJECTMATTER EXPERT, except that the expert must be able to establish acommunication link with the system. With no such restrictions, theSUBJECT MATTER EXPERT can be located anywhere in the world. This featureallows Subject Matter Experts of the highest caliber to be obtained,because such experts are a rare species, and not easily located.

Intelligent Administrator

An INTELLIGENT ADMINISTRATOR, IA, taking the form of a system ofprograms and computer objects, organizes the instructional activity. TheIA does the following: examines the PROFILE of each student, selects theproper lessons for each session, administers examinations to thestudents, updates the PROFILE, and patches up the student with a SUBJECTMATTER EXPERT when necessary. In addition, the IA assesses theperformance of the student, in a continual and non-intrusive manner.

The IA itself can call upon its own SUBJECT MATTER EXPERTS when itencounters a condition which its programming and organization cannothandle.

Greater Detail Concerning Invention

Invention Utilizes Commercially Available Equipment

The invention can be utilized in conjunction with the informationmanagement system sold under the trade name “Continuous Learning System”(CLS) and available from AT&T Global Information Solutions Company,Dayton, Ohio. CLS provides the systems to allow the remote access andvideo conferencing described above.

This discussion will explain some of the relevant features of CLS, andwill then consider m greater detail the PROFILES and the IA.

1. CLS Uses Multiple, Linked Computers. In CLS, users interact withmicro-computers, such as the well-known, highly advanced, andinexpensive Personal Computer (PC). The micro-computers are located atlocations of the users' preference, such as their homes, offices, orvehicles. The micro-computers connect with CLS by data links, such asprivate or public data networks, or by commercially available telephonechannels.

The links can take the form of traditional, hard-wired telephonechannels, or wireless links, such as provided by cellular telephoneservice.

2. CLS Has Vast Storage Capability. Entire Curriculum can be Stored. CLSacts as a storage facility for materials which are generically calledRESOURCES. RESOURCES can be classified into two types, namely (a) thosewhich are downloadable and (b) those which are not. Two examples ofdownloadable RESOURCES are (a) a computer program, and (b) a file storedon a mass storage medium, such as a disc- or tape drive. Two examples ofRESOURCES which are NOT downloadable are (a) a 35 mm film and (b) abook, in paper format.

Static and Dynamic Resources

RESOURCES consist of anything which has potential value in terms ofrecovering knowledge. RESOURCEs include, for example, information whichcan be downloaded, such as data, files, computer applications,computer-managed instruction. RESOURCES also include SYSTEMS, such asthe commercially available information services known as CompuServe andProdigy, because these SYSTEMS allow recovery of knowledge. SubjectMatter Experts are also RESOURCES. RESOURCES can be classified in adifferent way, namely, as either static or dynamic. The RESOURCESdiscussed above are of the static type, because, at the time ofrecovery, they are pre-existing.

Dynamic RESOURCES are not pre-existing at the time of recovery, but comeinto existence at the time of recovery. For example, when televisionnews media cover an event in real time, such as the State-of-the-UnionAddress of the President of the United States, information contained inthe Address becomes available for recovery (if the news media islinkable to CLS or an equivalent). The information was not pre-existing,but came into existence at the time recovery became possible. (Ofcourse, there is an extremely short time delay between the time of theAddress and time recovery becomes possible. This time is considerednegligible, and does not render the Address pre-existing.)

Non-Downloadable RESOURCES Can be Used

In general, it is expected that the invention will utilize downloadableRESOURCES In primarily. However, because the vast storage ability allowsthe invention to hold a curriculum of truly immense proportions, it isexpected that many educational courses will refer to materials whichcannot be rendered into downloadable format, for reasons such ascopyright laws. For such courses, the automated retrieval capabilitiesof CLS become significant. These features are described in the RelatedApplications.

Storage facilities in CLS are called REPOSITORIES. A REPOSITORY includesone micro-computer, or a group of micro-computers at a single location.(REPOSITORIES can also contain more advanced computers, such asmain-frames and mini-computers.) The REPOSITORIES themselves can bedistributed over an extremely wide geographic area; they can be spreadworld-wide. As a result, the RESOURCES will likewise be widelydistributed, because they are stored in the REPOSITORIES.

However, despite this geographically distributed storage of RESOURCES,and despite the vast total storage capability of the overall system, CLSallows the user to deal with all downloadable RESOURCES as thoughphysically present on the user's computer. That is, in effect, the usersees all RESOURCES; no matter where located, as though located in thestorage devices of the user's own computer.

Therefore, several school districts can maintain their own REPOSITORIES.However, because the REPOSITORIES are linked by CLS, to the student, allRESOURCES appear to be located at a single, convenient location. (Ofcourse, under CLS the student can, if desired, ascertain the fact thatthe RESOURCES reside in different REPOSITORIES, and are not, m fact,located at a single place.)

3. CLS Has Database Characteristics. CLS can be viewed as a type ofdatabase, but with several distinguishing features. One, the storagecapacity of CLS is, for practical purposes, without limitation. Onereason is that the architecture of CLS centers upon the PC. Expansion ofstorage in PCs is simple and inexpensive. Further, additional PCs can beadded to CLS with little or no software modification: CLS is designed toaccommodate this expansion. Stated in other words, the PCs are directlyconcatenable. In principle, there is no practical limit to the amount ofstorage available.

A second feature is that CLS allows a user to see a list of RESOURCES,to which the user is allowed access, and allows the user to select aRESOURCE. If the RESOURCE is a computer program, or other object thatruns on a processor, CLS retrieves the selected RESOURCE, and launchesit.

In the present context, this feature is important, because the RESOURCESinclude educational computer programs, as discussed below. When thestudent, or the INTELLIGENT ADMINISTRATOR, selects a RESOURCE, CLSautomatically launches it, if possible.

4. CUSTODIAN of Each REPOSITORY Controls Contents (ie, Resources) ofREPOSITORY, and Controls Access to RESOURCES Contained within theREPOSITORY. The person, or agency, having physical custody of eachREPOSITORY has the power to load RESOURCES into storage within thecomputers of the REPOSITORY. Thus, the CUSTODIAN controls the contentsof the REPOSITORY. Further, CLS allows the CUSTODIAN to designate theparties who shall be granted access to each RESOURCE.

Under the present invention, a local school district, for example, willcontrol the RESOURCES, which contain the curriculum for the students.This school district will control access to the RESOURCES, and can grantaccess to students of other districts, if desired.

5. Each RESOURCE Has a PROFILE. A “RESOURCE PROFILE” is a collection ofinformation which describes a RESOURCE. The PROFILE contains, forexample,

-   a) a descriptive title;-   b) the REPOSITORY containing the RESOURCE;-   c) information about physical characteristics of the RESOURCE (media    type, such as computer disc, video tape, paper book, etc.);-   d) relevant dates, such as date of loading into the REPOSITORY;-   e) security-related information;-   f) and so on.

The PROFILEs are somewhat analogous to the cards of the card catalog ofa library. In a library, the books, and other media, such as film andvideo tape, constitute RESOURCEs. In CLS, the RESOURCEs include a morediverse array of media types than a library, but the PROFILEs serve afunction similar to that of the cards.

Adaption of CLS to Education

A LEARNING PROFILE is generated for each student, in a manner discussedin greater detail below, and these are called LEARNING PROFILES, todistinguish them from RESOURCE PROFILES, which describe RESOURCES, andnot students. The LEARNING PROFILEs conform to the PROFILEs used by CLSfor RESOURCEs generally. The student-PROFILEs contain information aboutthe student which is relevant to the INTELLIGENT ADMINISTRATOR. TheLEARNING PROFILES can be arranged to follow the students through theirentire careers, subject to legislation regarding privacy of the contentof the LEARNING PROFILES.

Learning Profile Creation

The LEARNING PROFILE can be created in numerous different ways. Forexample, standard psychological testing techniques and personalinterviews can allow a counsellor to generate a LEARNING PROFILE, whichis loaded into CLS.

As another example, CLS itself can administer known, standard tests, anddevelop the LEARNING PROFILEs without intervention of a counsellor. Inpractice, the LEARNING PROFILE generation will probably be undertaken ina procedure which is a hybrid of these two examples. At the end of theSpecification, a discussion is given regarding learning strategies, andcontains additional material relevant to LEARNING PROFILE generation.

PROFILE Content

The LEARNING PROFILES contain information such as the following:

-   1. Student's curriculum, or “major.” One benefit of the invention is    that all students, at all levels, can be given individualized    attention. Even very young students can be given a “major” if    desirable.

That is, in present educational systems, younger students, such as thosein the earlier years of primary education, are usually not givenspecific curricula. For these students, education tends to benon-specialized and generic; all students tend to be similar courses.

The invention allows education to be tailored to individual needs, atall educational levels. One reason is reduction in cost: the inventioncontains the vast array of lessons needed to provide individualattention. There is very little added cost in making the individualattention available to additional students.

-   2. Preferred teaching strategies. At the end of the Specification,    teaching strategies are discussed. In general, different teaching    strategies are available for most, if not all, subjects. As an    example, the Suzuki method of teaching piano illustrates one    teaching strategy.

Under this strategy, students listen to recordings of piano music playedby a master, and then imitate the master by playing the musicthemselves, while reading sheet scores of the music. While the studentplays, a teacher, coaches the student. Right from the start, the studentplays complete (though simple) songs.

In contrast, under another method, the student does not initially studycomplete songs, but instead studies the components of songs, namely,single notes, their duration, their intensity, and so on.

Both methods have their advocates and critics. Without considering thedebate itself, it seems reasonable to assume that neither method isperfectly suited to all students.

The invention, if called upon to teach piano, would recognize this fact.Under the invention, each student's PROFILE contains an indication ofthe student's preference, such as for the Suzuki method, or anotherapproach, and the student is instructed accordingly.

-   3. Student's present standing. The PROFILEs contain a statement of    the student's previous accomplishments, which indicate the student's    present standing, or status. From a lifetime viewpoint, the present    standing refers to the present educational level of the student,    such as fifth grade, or college sophomore.

From a more focused viewpoint, the present standing refers to thecourses presently being taken, and the progress made in each. Forexample, in a high-school course in algebra containing 60 lessons, thepresent standing will indicate the number of lessons successfullycompleted.

The present standing provides specific information for CLS to use indetermining what material to present to a student during a givensession.

The present standing is preferably ascertained in a non-intrusive,transparent manner, based on a demonstration of level of competency bythe student. Level of competency can be determined, in many, if notmost, subjects, by assessment in a hierarchical fashion. For example,assume that a given student is undertaking a course in calculus.

Calculus textbooks present material in a sequential manner, in the sensethat mastery of earlier material is required as a prerequisite tounderstanding later material. A simple assessment of level of competencyof a student can be done by determining in which chapter of the textbookthe student's mastery ends.

As another example, assume that the student is undertaking a course ingas turbine engine maintenance. Many maintenance procedures involvesequences of events, wherein the order cannot be changed. A student'slevel of competency can be assessed by determining how much of a givensequence the student has mastered.

It is significant that the source of a student's knowledge whichdetermine the level of competence is not germane to the assessmentprocess. The assessment process seeks to determine a level ofperformance, or level of competency, because the goal of the overalleducation process is to enhance ability to perform.

-   4. Significant personalized information. This is perhaps a sub-class    of preferred teaching strategies. This section contains information    about unique attributes of the student which either present    difficulties in teaching the student, or facilitate teaching.

For example, a student who has a hearing impairment may require speciallessons, as compared with a student having hearing abilities within thenorm of a standard population. As another example, a student who has aphotographic memory may find that learning the vocabulary of a foreignlanguage is an extremely simple task.

The PROFILEs, in general, facilitate the IA's matching of the students'needs with the RESOURCEs which are suited to those needs. The PROFILEscontain information such as that described above, plus additionalinformation required, to accomplish this goal.

RESOURCEs

In general, RESOURCEs include all materials made available by CLS. Inthe context of education, RESOURCEs include a significant number ofcomputer programs which teach. There are numerous types of suchprograms, and hundreds, and perhaps thousands, are commerciallyavailable today.

Intelligent Administrator

The Intelligent Administrator (IA) is a system of computer programs,which can operate alone, or in conjunction with an SME or otherconsultant. The IA does the following:

-   1. Based on PROFILEs, the IA assesses a student's current standing    within a curriculum, and determines the skills required for the    student's present advancement.

For example, the IA may determine that a given student stands at thebeginning of the junior year in high school, and that the student hassuccessfully completed 12 of 60 lessons in analytic geometry. Based onthis assessment, the IA decides that lesson number 13 should be givennext.

-   2. The IA locates the RESOURCEs necessary for the required lessons.    In this example, the IA would locate lesson 13, identified above.    Lesson 13 will probably reside in the local school district's    REPOSITORY, but, because of the capabilities of CLS, lesson 13 can    reside anywhere within the overall CLS system.

Since multiple teaching strategies are available, and are used if thefirst-chosen strategy does not produce results, the IA locates themultiple RESOURCEs which represent the multiple strategies. (In thegeneral case, these RESOURCEs will not be located m the same REPOSITORY,although they can be.)

-   3. The IA assesses whether the RESOURCEs are successfully imparting    the knowledge desired to the students. This assessment can be done    by using known, standardized testing approaches, given by computer.    Additional Considerations and Characterizations

1. Different presentation of a given lesson was discussed above. In thesection entitled “Teaching Strategies Generally,” located below,references are discussed which elaborate on the concept of differentlearning behavior of different students. These references provide thegeneral principles of creating different presentations.

A more rote-minded approach would be based on the fact that differentteachers themselves probably make different presentations of a giventopic. Therefore, one approach to generating the different presentationsis to assign a number of teachers, say ten, the task of each writing alesson explaining a topic. The ten different lessons will provide tendifferent presentations for the collection of presentations.

2. The invention measures the rate of learning of the student, andprompt the student to end a lesson when the rate is seen tosignificantly falter. For example, suppose that a student is studying asubject which is memorization-intensive, such as biology. The lessonscan be arranged such that learning is presented in groups of twentyconcepts. After each group of twenty is presented, an assessment of thestudent is done.

The IA logs the time required by the student to learn each group. Whenthe time falls below the best time by a predetermined amount, say thirtypercent, the IA attempts a different teaching strategy. If that fails,after a predetermined number of attempts, then the IA patches thestudent into a Subject Matter Expert.

3. One form of the invention includes the following components:

-   a) CLS.-   b) The educational programs, including the different presentations    of a given subject, which are commercially available, or can be    developed based on known principles.-   c) PROFILES, which are developed according to the teachings of this    Specification.-   d) The INTELLIGENT ADMINISTRATOR, which primarily i) selects    different teaching strategies, based on A) profile of student and-   B) success of previous lessons.

The details concerning implementation of the INTELLIGENT ADMINISTRATORare known, given the mission of the IA as described herein.

-   e) The SUBJECT MATTER EXPERTS.

4. The video conferencing feature of CLS allows a SUBJECT MATTER EXPERTto teach small groups of students, and the students to confer with eachother. As an example, after students in an ordinary school take anexamination, many of them congregate and compare opinions on the exam.Under the invention, similar behavior IS possible, but by way of videoconferencing.

5. The distributed aspect of learning is important. A student canundertake learning at any location, provided a Communicator is availableto link with CLS, or an equivalent.

For example, a newly hired business person must learn certain internalprocedures followed within the hiring organization, such as filling outexpense account forms. It is known in the art how to write a programwhich explains how to fill out such a form. (In a highly simplisticsense, the program can merely repeat the text of written instructionswhich undoubtedly have been written.)

This instructional program is made available via CLS. The businessperson can now learn how to fill out the expense “form,” using aCommunicator, such as a PC and a modem, at any desired location, such asin a waiting lounge at an airport. Then, having mastered the procedure,the person can fill out needed “forms” at any location whatsoever,provided a link to CLS, or to an equivalent, is available.

6. Two learning styles are discussed herein, namely, “holistic” and“linear.” There exist other distinctions in approaches to explainingsubject matter to a student. Three examples are the following.

-   A. Some students prefer to read material; others prefer to hear an    explanation of material spoken by a teacher.-   B. Some students prefer to have material presented in a verbal    format, either in writing (which is read) or in speech (which is    heard). Other students prefer to have material presented in    graphical format. A good example of this distinction is found in    Gray's Anatomy. Two versions exist: there is a version which is    primarily textual, and contains few pictures. There is another    version which is primarily graphical, and is replete with pictures.-   C. When technique is being taught, some students prefer to see a    demonstration; others prefer to hear a description of the principles    of that demonstration.    Profiles and Learning Strategies    One Approach to Developing a Learning Profile

The invention obtains necessary data from the student, such as name,age, and previous learning completed in school. This information allowsthe AI to place the student m the proper grade.

The invention then ascertains the student's preferred learning stylethrough an entry adventure. (Different adventures will be given tostudents of different age, so the age, or last grade completed, willinfluence the choice of entry adventure presented to the student.)

Each student can take a new entry adventure every year, to ascertainwhether the learning characteristics have changed. Also, since girls andboys differ in their intellectual and social development, and since theentry adventure should catch their interest and create enthusiasm forthe coming year's studies, different versions will be used for boys andgirls.

In this adventure students solve a problem, or pursue an adventure. Thechoices made indicate their comprehension speed and favored style oflearning.

Learning Speed

The student's learning speed can be measured by how long it takes astudent to solve a given problem, or to perform an assigned task.Several problems will be embedded in the adventure; the problems willprovide information and then require the student to apply it insituations which require different levels of complexity and integration.The invention can tally the total time elapsed for the student to solvethe problems, and compare the total to the norm for that grade in thestudent's school district or region. (This learning speed measure isdifferent from IQ measurement; research has shown that evenabove-average students differ in their learning speed.)

Physiology can Correlate with Learning Speed

There has been some research pioneered by W. C. Sheldon at Harvard inthe 1930's and 40's, on the correlation between body type and learningcharacteristics. (Smith, 1949, pp. 310-320). Sheldon delineated threebody types, based on the embryonic source of tissue: ectomorph (tall andskinny), mesomorph (compact and muscular) and endomorph (large and oroverweight).

More recently, Chopra has pointed out that a particular traditionalmedical system, of interest to him, also defines three basicphysiological types in a manner similar to Sheldon's. (Chopra 1990, pp.33-41).

According to Chopra, some students (endomorphs) learn slowly but retainknowledge quite well, and others who learn quickly tend to forget justas quickly (ectomorphs).

Therefore, physical examination of students may provide data indicativeof learning characteristics. Further, the invention can be used tovalidate, or derive, correlations between measured physiologicalparameters and learning behavior. When correlations are found, theidentification of learning characteristics can be made based on thephysiological parameters, which are presumably easier to ascertain.

For example, a standard set of physiological parameters of students aremeasured and placed into the PROFILES. Known medical and public healthtechniques list these standard parameters. Then, over time, theINTELLIGENT ADMINISTRATOR looks for correlations between learning speed,preferred learning style, etc., and the parameters. Known statisticaltechniques provide the correlation.

When correlations are found, then the measured physical parameters areused to indicate the learning characteristics of subsequent students,rather than testing for the characteristics themselves.

Preferred Style of Learning

There is much written m educational psychology about learning styles,usually referred to as “cognitive styles.” Cognitive style, or learningstyle, refers to the way in which a student prefers to organize his orher thought processes—his or her preferred mode of thinking. There are afew different approaches which could be used, but by far the largestbody of research shows that learning style preferences usually fall intoone of two groups, stereotyped as artistic or scientific thinking.

Hunter Breland, a research psychologist for the U.S. nationalEducational Testing Service, asserts that “the most widely examined”cognitive style is the continuum of field dependence/independence(Breland, 1981, p. 38). The basic difference between field dependent andfield independent problem-solver is that the former tend to depend oncues from the environment to solve the problem, and the latter tend torely more on internal cues. He quotes a study by Witkin et al. (1977)which indicates that field-independent college students tend to major inthe sciences while the more field-dependent students gravitate towardmajors m education (p. 38).

Entwistle (1981) writes about Pask's research categorizing students as“holist” or “serialist.” The holist learning style, called comprehensionlearning, involves “building descriptions of what is known.” Theserialist style is called operation learning, “the facet of the learningprocess concerned with mastering procedural details.” (p. 93)

When Pask assigned students to either a matched or mismatched learningsituation, the results were notable: the matched students were able toanswer most of the questions regarding the lesson, while the mismatchedstudents generally scored less than 50% correct. Entwistle's conclusionis that although, teachers will never provide as extreme an example ofmismatching, there is evidence in primary education to support the factthat different teaching methods are effective to different degrees forstudents with different personality characteristics.

There has been other research indicating that students differ in theirpreference of inductive or deductive reasoning. Another area of researchhas been whether students to prefer to use what are commonly considered“right brain” skills (creativity, association, Imagery, analogies,spatial relationships, feelings) or “left brain” skills (logic,sequence, organization, structure, procedure).

All of these approaches have the same theme: the basic question iswhether a student prefers to use logical, procedural, linear thoughtprocesses or holistic creative (associative), spatial processes. Mostauthors point out that many learners are flexible and can moverelatively easily between the two cognitive styles. And, as most everyauthor points out, everyone must use both approaches at different stagesin the solution of a problem, and the ideal is to be able to functionwell in both (e.g., an architect must think creatively to plan a house,but then he must also know clearly the sequence of building, or thehouse will not materialize).

This computer program can assess whether one of these learning styles ispreferred on the basis of choices made in the context of the entryadventure. If a student is reasonably comfortable with both, then he orshe will be branched into the standard curriculum, which is a mix ofboth styles. If, however, a student displays a dear preference for onestyle, he/she will be branched into a curriculum which favorsexplanations and examples m that style.

Delivering the Content and Mastery of the Material

The curriculum must also be structured from sound learning principles.There are a few different schemes for classifying the necessaryconditions for learning but Gagne's learning outcomes and conditions oflearning are the most thoroughly developed and therefore the most usefulin developing computer-based instruction.

Gagne classified all possible learning outcomes into five performancecategories: intellectual skills, cognitive strategies, verbalinformation, motor skills, and attitudes. Examples of these, along withtheir subcategories, are shown in Table 3.1, below, taken from Gagne'sEssentials of Learning for Instruction (1975, p. 68). These are usefulfor design purposes in that they describe capabilities which applyacross all subject matter areas. According to Gagne, certain conditionsare necessary for learning each of these types of outcomes. Someconditions are “internal” and some are “external.”

The internal conditions define prerequisite knowledge or skills, andexternal conditions define certain aspects of the instruction; theinvention should be concerned with both. The following descriptions ofinternal and external conditions required are derived from Gagne's TheConditions of Learning (1977, pp. 25-49).

For the learning of intellectual skills, the primary internal conditionis that the student have prerequisite skills which provide thecomponents of the new skill being learned. External conditions are oftenin the form of verbal directions which guide the combination of simplerskills into a new integrated whole.

In terms of verbal information, internal requirements are that thelearner have a good mastery of linguistic rules and vocabulary in orderto understand statements presented, and he or she must also havepreviously existing “cognitive structures” (p. 40), or structures ofmeaningfully organized information which will give meaning and contextto the new material presented.

One external condition is stimulation of the appropriate cognitivestructure (usually in the form of an advance organizer). Another isinforming the learner of the objective of the learning; this focuses thelearner's attention. A third may be repeated hearing or reading of aninformational passage; most modem theories concur that more informationis assimilated with each repetition (p. 40).

Cognitive strategies refer to how the learner organizes his or her ownthought processes (attention, learning, remembering, thinking). Theinternal conditions required are memory of intellectual skills andverbal information previously learned which relate to the new taskpresented. The most effective external condition is evidently frequentopportunities to practice strategizing. According to Gagne, practicerefines and improves the strategies.

TABLE 71A Five Major Categories of Human Capabilities, Representing theOutcomes of Learning with Examples of Each Example of Human PerformanceMade Learning Outcome Possible by the Capability Verbal InformationStating the provisions of the First Amendment to the U.S. ConstitutionIntellectual Skill Showing how to do the following: DiscriminationDistinguishing printed b's from d's Concrete Concept Identifying thespatial relation “be low” Defined Concept Classifying a “city” by usinga definition Rule Demonstrating that water changes state at 100 C.Higher-order Rule Generating a rule for predicting rainfall, givenconditions of location and terrain Cognitive Strategy Originating anovel plan for disposing of fallen leaves Attitude Choosing swimming asa preferred exercise Motor Skill Executing the performance of planingthe edge of a board

The learning of motor skills (e.g., courses in drafting, carpentry, etc.in the curriculum) requires the student to master in overall sequenceand pattern of movements. Especially in the case of a complicatedprocedure (e.g., constructing a chair) sometimes the sequence must belearned in parts, which are then put together. The main externalcondition required is repeated practice, which makes performance moreand more smooth and predictable.

Attitudes are expressed behaviorally; therefore one internal conditionfor learning new attitudes is that the learner must have masteredwhatever skills or knowledge the behavior requires (e.g., knowledge ofthe rules in order to enjoy playing chess, etc.) Another internalcondition is that the learner must have admiration and respect forpeople who are seen doing the behavior; this is called “human modelling”(p. 46.) The only external conditions which seem to be effective arethat either the learner himself or a human model experiences the effectsof an action as “good” or “bad.”

A summary of the external conditions which facilitate learning is shownin Table 4.2, from Essentials of Learning for Instruction (Gagne, 1975,p. 93). One way the invention will ensure mastery will be that theentire curriculum will be designed in accordance with these sound andwidely accepted learning conditions of Gagne.

The invention has two ways to help a student who demonstrates throughhis or her score that internal conditions of learning are deficient(e.g., prerequisite skills or knowledge are lacking). The first is thata HELP screen is always available at the student's request. To avoidboredom or frustration, a student will be able to access a HELP screenat any point during an instructional unit. This first level HELP screenwill allow the student to:

-   change skill levels (learning speeds)-   change learning styles-   request another explanation-   request review of any previous material-   request a conference with a teacher

Depending on the option chosen, the invention will then adjust astudent's learning speed up or down, give another explanation andexamples (one in the same learning style and one in a different learningstyle), review specific sections in the unit (or all previousinformation in the unit), or connect the student to a live videoteleconference with a teacher. Access to this HELP screen is optional,and a student may choose it once, several times, or not at all during aunit of instruction.

TABLE 71B A Summary of External Conditions Which Can CriticallyInfluence the Processes of Learning Class of Learning Objective CriticalLearning Conditions Verbal 1. Activating attention by variations inprint or speech Information 2. Presenting a meaningful context(including imagery) for effective coding Intellectual Skill 1.Stimulating the retrieval of previously learned component skills 2.Presenting verbal cues to the ordering of the combination of componentskills 3. Scheduling occasions for spaced reviews 4. Using a variety ofcontexts to promote transfer Cognitive 1. Verbal description ofstrategy. Strategy 2. Providing a frequent variety of occasions for theexercise of strategies/by posing novel problems to be solved.Attitude 1. Reminding learner of success experiences following choice-ofparticular action; alternatively/insuring identification with an admired“human model” 2. Performing the chosen action; or observing itsperformance by the human model 3. Giving feedback for successfulperformance; or observing feedback in the human model Motor Skill 1.Presenting verbal or other guidance to cue the learning of the executivesubroutine 2. Arranging repeated practice 3. Furnishing feedback withimmediacy and accuracy

Students who score average or above average will be able to:

-   go to the next unit-   change subjects-   Request a live conference with teacher-   Log off for now.

The conference option with SUBJECT MATTER EXPERTS makes it possible fora student who has mastered the unit but who is curious about tangentialor deeper levels of the material to ask questions while his or herinterest is still fresh. If a teacher needs to research the answer, thestudent could find the answer on the system at log on the next day, orCLS can page the student with a notice of the answer's availability.

A student who scores below average on the unit would automatically begiven a diagnostic check. This is the second way in which the system canassess lack of prerequisite skills, as well as other problems. Thediagnostic check will be in the form of a question (Did you use the HELPscreen during the unit?) and a menu for the student to choose from:

-   Too easy-   Too hard-   Not straightforward enough (linear-biased learners will tend to    think this about a curriculum that is too holistic)-   Explanations seem incomplete (holistic-biased learners will tend to    think this about a curriculum that is too linear).-   Other

(Re-wording may be necessary for younger learners, but the idea will bethe same.)

The computer system will automatically process the diagnostic resultsand adjust the curriculum accordingly. If the student requests, orchecks “Other” he/she will be connected with a teacher for a liveteleconference. After this diagnostic step, the student will then begiven a menu screen with the choices:

-   further study-   change subjects-   log off

If the student chooses to either change subjects or log off, thecomputer will automatically place him at the beginning of customizedremediation for this unit the next time this subject is requested. Ifthe student chooses further study, he will begin the customized remedialcontent for the unit. This will include new explanations, examples, andpractice situations.

When the remedial unit is complete, the score is displayed, and theabove loop is repeated. If the student's score is still below average,he should automatically be connected with a teacher for a conference.

The teachers who work with this system will need to have Teachers'Guides containing all the content and resources in the system; therewill be one of these for each grade level. They will need to know thesewell so that they can give assignments within the system to coverdifferent problems that may arise.

The invention can be designed to provide many options, and the student'spreferences can lead him through the curriculum to some extent; but theteachers' role will be critical in guiding the student through any roughspots, and being sure that the entire year's curriculum is completed ontime.

Evaluation and revision must be built into the implementation of thesystem, especially for the first two years of use. Both the student andteacher should evaluate each unit of instruction as it is completed. Thestudent could have a very short on-screen questionnaire immediatelyafter the unit score is displayed, and the teacher could have the optionof recording any comments about the content or design of the unit in thelight of that student's experience.

Sample Lesson

Johnny, age 10, logs on to the system for the first time. The screenasks him to type his name, age, and assesses Johnny's last gradecompleted in school, which in this case was fourth grade.

The computer automatically branches Johnny into the fifth grade entryadventure for boys—the world of ancient Welsh legends, brought to lifeagain through a time warp caused by the bizarre collision ofincompatible electromagnetic fields on the exact spot where the Lord ofDeath was vanquished centuries ago. Death and his forces are abroadagain, causing terrible damage. The challenge is to find him and traphim into returning to this spot, where the quantum mechanical laws ofnature are normally strong enough to hold him fast.

To help Johnny solve this challenge, two guides provide assistance: oneexplains things using analogies and associations, and the other useslogical, linear, no-frills explanations. Johnny is frequently askedwhich of these guides he wants to ask for advice; in this way, thesystem can determine whether Johnny has a preferred learning style.

Johnny is given information of varying complexity at different points inthe adventure. He is then asked to apply it in a number of situations.The computer tracks how many choices it takes Johnny to solve theproblem, and compares this number to the norm. Assume that Johnny fallsinto the lower range.

Having finished the entry adventure, CLS identifies Unit 1 of thescience curriculum. He first sees a short video clip of the scienceteacher, who introduces himself, explains how the unit is structured,and reminds Johnny that the HELP screen is available at any time, andthat Johnny call talk with him in person by choosing that option. ThenJohnny begins Unit 1.

The testing indicated that Johnny is a slower learner who is morecomfortable with a holistic learning style, so he is branched into theholistic-dominant curriculum at the slower learning speed. First he seesand hears the story which acts as the advance organizer for the year'sscience study: there is a benevolent extraterrestrial messenger who hasbeen given one year to convince his superiors that the earth should bespared from destruction.

Johnny's lessons examine selected features of the earth. At the end ofeach lesson, Johnny must provide information to the messenger whichindicates whether the features studied have value, and should bepreserved, so that the messenger can relay the information. The learningobjectives for the year will be listed in this context. Then Johnny willsee the tasks (learning objectives) that he must master for Unit 1 onGeology.

The learning outcomes expected in Unit 1 also verbal information,intellectual skills (all levels) and cognitive strategies. Gagne'scritical learning conditions (e.g., presenting important ideas incontext or building in occasional reviews of what has been learned) fromTable 4.2 provide the structure for the stories, games, and adventureswhich comprise the unit of instruction.

Johnny works along in this highly—but transparently structured—learningenvironment until he does't understand something. At that point, heremembers that he can use the HELP screen. He chooses the HELP screenand indicates that he wants a further explanation. He is given two moreexplanations (one in each learning style) with examples and two practicequestions at the end. His answer indicate that he understands, and he isbranched back into the unit.

Later in the unit, he isn't sure that he understands something and hechooses “practice questions” under HELP 1. Still confused after those heasks for further explanation, which still does't clear up the problem.He is automatically branched into a live teleconference with theteacher, who sets him back on track, and tells Johnny how he can getmore information on the subject if he wants, but tells him that now hecan also go on if he prefers.

Johnny continues work in the unit until he has another question; hecalls up the HELP screen and selects “further explanation.” This time heunderstands well enough after the explanations to answer the twopractice questions correctly, and he is then branched back into theunit.

Johnny finishes the unit with a test of his mastery of the learningobjectives for the unit. Rather than calling it a test, the systempresents it as his report for the extraterrestrial; it includesgeological reasons why the earth, and the study of its geology, isimportant.

Johnny finishes the unit with an average score. He is asked to answerthree short questions (“What did you like best about this unit?” “Whatdid you like least . . . ?” “Any ideas for making it better?”) regardingthe appeal and effectiveness of the unit. Then he is given the optionsof going on to the next unit, changing subjects, talking with theteacher, or logging off.

Curriculum Generation and Marketing Collateral

-   Provides a review of standard course descriptions and objectives-   Provides ability to review and define a custom curriculum-   Offers a course catalog with descriptions of course-ware and    curriculum planners-   Provides previews of training courses-   Allows download of educational collateral

The education related services component of the present inventiongenerates a curriculum of course offerings in operation 7100. A reviewof standard course descriptions and objectives is provided. Alsoprovided is the ability to customize the curriculum. Course informationand dates are described in a course catalog, which is displayed or madeavailable for download. The course catalog may also describe course-wareand suggest curriculum. Also available for download is educationalcollateral. Optionally, previews of training courses may be provided forexample as promotional material or to help a user prepare for the firstclass.

One embodiment of the present invention is provided for automaticallygenerating a student educational curriculum. See FIG. 72. First, inoperation 7200, educational program offerings are displayed, which astudent is allowed to review. Next, in operation 7201, the student isprompted to define his current expertise by completing a student profile(user indicia), which is received by the invention in operation 7202 andused to generate a user profile in operation 7203. Referring to FIG.25B, for example, the student profile may define a current expertise.The education curriculum would be generated based on the currentexpertise in operation 7300. Then, the student defines his traininggoal, such as a specific certification or degree (additional userindicia), which is received in operation 7301. Or the training goal maybe taken from the student profile in operation 7302. The educationcurriculum is generated to fulfill the training goal in operation 7303.The student's progress is monitored and revised educational curriculumsare produced, when necessary, in operation 7304 based on the monitoredprogress. Finally, an education curriculum based on the user profile isgenerated in operation 2514 of FIG. 72.

The student may also opt to follow the original educational curriculumor the revised curriculum. Incentives and disincentives may be utilizedto influence the student's curriculum choices.

Register for Training and Order Training

-   Provides an interactive interface to register for all offerings-   Integrates with commerce functions to provide order placement and    transaction processing (e.g. Takes orders online by credit card)-   Allows users to register for third party training-   Allows users to register for online training-   Supports multiple payment options-   Integrates with third party systems

Users may order and register for any educational offering on aninteractive interface through operation 7102 of FIG. 71. Examples ofofferings may include third party training and online training. Theinteractive interface may be integrated with the commerce component topermit transactional processing when placing an order. For example, auser may sign up for an offered course and pay the tuition by creditcard. Alternatively, the commerce component could create a paymentschedule which requires that payments be made periodically. Optionally,the registration and ordering components are able to integrate withthird party service providers' systems.

Online Training

-   Courses can be deployed over a variety of environments (e.g. LANs,    WANs, intranets, internet, etc.)-   Offers tests over individual courses as well as entire curriculum-   Offers courses that can be taken live, directly from the web server    or downloaded to learner's workstation-   Provides ability for administrators to post bulletins announcing new    course-ware

The education related services component of the present inventioneducates users over a network such as a LAN, WAN, an intranet, theinternet, etc. Note operation 7104 of FIG. 71. Courses may be takenlive, directly from a server, or downloaded to the workstation of auser. Bulletins relating to the courses could be posted on electronicbulletin boards or electronically mailed to individual students. Testsmay also be offered over individual courses as well as entirecurriculum.

Training Account Status

-   Provides ability to check progress in individual courses or entire    curriculum-   Provides ability to match their completed courses against vendor    certification program requirements-   Provides ability for administrators to track training library usage-   Provides ability to send in status reports to administrators via    various media-   Integrates with third party training centers to update training    status

The status of the education of the user may be checked at any time inoperation 7106, including checking progress in individual courses or theentire curriculum. A user is also able to match completed courses tocertification program requirements. Administrators are permitted totrack training library usage as well as receive status reports ofindividual students or all students in a course. Optionally, theeducation related services component of the present invention integrateswith third party training centers to update the training status of auser, particularly useful for users who wish to take courses of anotherprogram.

Customer-Related Web Application Services

Referring to component 5312 of FIG. 53A, one embodiment of the presentinvention is provided for affording a combination of customer-relatedweb application services to support a product. More detail is providedin FIG. 74. In operation 7400, a user is allowed to register theproduct. Further, on-line support information is provided about theproduct. Such support information is provided based on queries. Noteoperation 7402. As an option, this information may also be afforded byway of a specially managed call center. In addition, in operation 7404,claims may be handled relating to the product. During operation 7406,the users are automatically notified of upgrades and/or problemsrelating to the product. Consulting services may also be made available.

Product Registration

-   Allows customers to register products online-   Automatically sends users confirmation of registration-   Notifies users of upgrades or other product-related information-   Maintains database on user's purchases to create profiles

Operation 7400 of the web customer service component of the presentinvention allows the registration of a product, preferably online. Uponregistration of a product, confirmation that the registration has beenreceived is automatically sent to the user, such as by email. Notices ofupgrades, promotions, and other product-related information is sent toregistered users. A database stores the purchases of each user to createprofiles, which may be used statistically for marketing purposes.

Web Based Self-Support/Knowledge Search/Diagnostics Search

-   Accepts queries in natural language format-   Responds with additional questions to facilitate issue resolution-   Provides solutions over several mediums (e.g. links to web pages,    graphics, illustrations, software updates, etc.)-   Offers an online technical library for quick troubleshooting-   Provides downloads of software fixes/updates-   Refers users to create service cases for unresolved issues

Referring to operation 7402 of FIG. 74, support information on a productmay be searched for based on queries input by a user. Queries may beaccepted in natural language format as well as by keyword. The supportcomponent may respond with additional questions relating to the matterat hand in an effort to better identify the problem. Solutions may beprovided over several mediums, including links to web pages, graphics,illustrations, animations, downloadable software updates and fixes, etc.Also provided may be an online technical library with answers to commonquestions for quick troubleshooting. For unresolved issues, the user maybe asked to create a service case which will be followed up on later bya technician.

In a traditional case, where goods are introduced to a customer in atraditional way, that is, through a catalog sent via traditional mail(not electronic mail) and so forth, or through other media, withoutusing an online communication system. If the customer has a questionabout the introduced goods, the customer may directly call a company orthe like which handles the goods and inquire thereof about the goods. Insuch a case, the customer tells the company the trade names, articleidentification numbers, and so forth, of the goods. Then, the customermay obtain an answer as to how to use the goods, a payment method whenbuying the goods, and so forth, from a person in the customer servicedivision m the company.

However, in an online mail-order case, goods information is transmittedto a customer from the center (the sales company) via the onlinecommunication system. In response thereto, the customer may make anorder for an article and transmit this information to the center via theonline communication system. Therefore, in such a case, it is notpossible to perform direct conversation between the customer and thecenter (the sales company). A database has been considered forexplaining goods and answering possible customer's questions. However,the contents of the customer's questions may vary for each particularcustomer. Therefore, the database which can answer various possiblequestions of the customer needs to have a very large amount of data andthus may be inefficient. Further, when assuming all possible customer'squestions about the goods and preparing answers thereto, it is notpossible that customers actually ask all the assumed possible questions.Therefore, a database may not be an efficient way to prepare all theanswers for all the assumed possible customer's questions.

The present invention has been developed in consideration of theabove-described problems. The present invention provides an answeringmethod and system in online shopping which enables, in an onlinecommunication system, easy production of data for answering customer'squestions and preparation of answers to general questions. Further, theanswering method and system, in online shopping, enables, in a casewhere complete answers could not be prepared for all the possiblequestions, an answer to be transmitted to the customer when the answerhas been prepared for a particular question given by the customer viaelectronic mail.

According to a first aspect of the present invention, in online shoppingin which a mail-order business is conducted between a center and aterminal via an online communication system, for answering a question ofa customer, necessary but minimum answers to questions are prepared in adatabase; the database is searched when the customer asks a question A,and, when an answer A to the question A is present in the database,transmits the answer A to the customer via the online communicationsystem; an answer B is prepared when an answer to the question A is notpresent in the database, and the answer B is stored in the database; andthe answer B is transmitted to the customer via electronic mail.

According to a second aspect of the present invention. the question A isstored as inquiring screen image information to be transmitted tocustomers, when an answer to the question A is not present in thedatabase.

According to a third aspect of the present invention, the customer isable to input any other question when the customer wishes to ask aquestion other than predetermined questions previously stored in aninquiring screen image information; any other question asked by thecustomer is temporarily stored when receiving any other question; anyother question and an answer thereto are stored as a question and answerset, when the answer thereto is prepared; and, at an any point of time,the database and the inquiring screen image information are updatedusing the question and answer set.

According to a fourth aspect of the present invention, in onlineshopping in which a mail-order business is performed between a centerand a terminal via an online communication system, for answering aquestion asked by a customer, there is provided an answer database forpreviously storing necessary but minimum answers to questions; questionitem determination means for receiving a question A from the customerand determining whether or not the question A is included inpredetermined question items; search means for searching the answerdatabase when the question item determination means has determined thatthe question A is included in the predetermined question items; onlinetransmission means for transmitting to the terminal, via an onlinecommunication system, an answer A obtained by the search means; answerrequesting means for requesting an answer when the question itemdetermination means has determined that the question A is not includedin the predetermined questions; updating means for updating the answerdatabase using an answer B after the answer B is obtained through theanswer requesting means; and electronic mail transmission means fortransmitting the answer B to the terminal via electronic mail after theanswer B is obtained through the answer requesting means.

According to a fifth aspect of the present invention, the updating meansincludes goods master file updating means for adding a question typecode representing the question A to at least one predetermined questiontype of a goods master file when the question A has received the answerB. The goods master file stores the at least one predetermined questiontype corresponding to a question item relevant to an article code of anarticle that the customer selected.

According to a sixth aspect of the present invention, the updating meanscomprises inquiring screen image information updating means for addingthe question A to the inquiring screen image information to be displayedto the customer, when the question A has not been included in theinquiring screen image information yet.

According to a seventh aspect of the present invention, the electronicmail transmission means transmits the answer B only to the terminal thatasked the question A.

In the first and fourth aspects of the present invention, answers to allpossible questions are not prepared in the database. Only necessary butminimum answers for goods which can be obtained in regular patterns areprepared in the database. Then, when the customer gives a new question,an answer to which is not included in the database, an answer istransmitted to the customer via electronic mail and also the answer isadditionally stored in the database. Thus, answers are automaticallyaccumulated in the database. The thus-accumulated answers can also beprovided for other customers when receiving questions from othercustomers. Further, because answers to all possible questions are notprepared, it is possible to reduce manpower costs and also to reduceotherwise necessary data storage capacity.

In the second and sixth aspects of the present invention, similar to theaccumulation of answers in the database, all expected question items areincluded in the inquiring screen image information to be displayed tothe customer. New question items that customers input are automaticallyadditionally included in the inquiring screen image information. Thus,question items are automatically accumulated in the inquiring screenimage information. Similar to the above-described first and fourthaspects, it is possible to reduce manpower costs and also to reduceotherwise necessary data storage capacity.

In the third aspect of the present invention, when the customer inputs aquestion item which has not been stored yet, the input question isstored in a predetermined file. Then, after an answer to that questionis obtained, the answer is stored together with the question as a set.Thereby, it is possible to update the database and inquiring screenimage information at any point of time using the stored answer andquestion set. Therefore, it is possible to perform the updatingoperation when periodically updating general information. It is alsopossible to perform the updating operation immediately after the answeris obtained. Thus, the updating operation is free from any timecondition.

In the fifth aspect of the present invention, each inquiring screenimage information is provided for a respective article code stored inthe goods master file. Further, a type code is given in the goods masterfile for each question item. When a question is asked by the customerand a type code of the given question item has not been stored in thegoods master file, a new type code is additionally stored in the goodsmaster file similar to updating of the database and inquiring screenimage information. Thereby, it is possible to keep consistency betweenthe data stored in the goods master file, database and inquiring screenimage information. Thereby, it is possible to prevent the amount of datatransfer between the center and terminals from unnecessarily increasing.

In the seventh aspect of the present invention, when a customer asks anew question, an answer that is prepared for the question afterward isthen transmitted only to that customer. That is, it is not necessary totransmit the answer to other customers because the other customer do notneed that answer. Thereby, it is possible to prevent the amount of datatransfer between the center and terminals from unnecessarily increasing.

Thus, according to the present invention, when an answer does not existm the database, the answer is obtained from sales staff, the obtainedanswer is sent only to a customer who requested the answer, and adatabase and so forth are appropriately updated using the obtainedanswer. Thereby, after the updating, other customers can obtain the sameanswer by an easy regular question-item selection operation.

Create and Manage Service Cases/Consultation Follow Up

-   Analyzes problem and routes to appropriate resources-   Facilitates consulting group follow-up-   Integrates with issue tracking tools (e.g. Vantive)-   Allows users to track status of a submitted service case

The web customer service component of the present invention provides forcreating and managing service cases and following up on those servicecases. The problems set forth in the service cases are analyzed and arerouted to the appropriate resources. Optionally, the service casecomponent may integrate with issue tracking tools such as Vantive toidentify problem areas. Also a user may be allowed to track the statusof a submitted service case.

Online Support

-   Handles conversation-based telephone inquiries for automated    customer support-   Provides intelligent call routing-   Offers “call-through” abilities from web link-   Provides real-time private chat sessions-   Provides real-time public chat sessions-   Provides ability for user to enter online questions-   Offers live agents to guide customer to solution-   Offers ability to send follow-up questions, Web pages, files,    graphics to customers-   Has ability to handle multiple customers simultaneously

Online support is provided by the web customer service component of thepresent invention, and is designed to handle multiple userssimultaneously. A knowledge base would store support information.Conversation based telephone inquiries are handled for automatedsupport. For example, a user may verbally ask a question and voicerecognition software would choose an appropriate automated responsebased on recognized words in the question of the user. Further, callsmay be automatically routed to the appropriate resource based on userinput. Call-through capabilities from a web link may be offered.

A user may also enter online questions. Email would be a popular meansof entering online questions. Real time public and private chat sessionscould also take place. Live agents could be kept on hand to answer anyquestions that the automated responses did not adequately respond to.Also, follow up questions, web pages, links, files, graphics,animations, and the like could also be sent to users.

Returns and Warranty Claims

-   Lists warranties-   Automatically checks user identity to validate user is registered-   Checks claim to see if it matches warranty criteria-   Request automatically routed to appropriate agent

The web customer service component of the present invention listswarranties for view by a user in operation 7404 of FIG. 74. When a userhas a product that requires service or return under the warranty, theidentity of the user is checked to ensure that the user has registered.The claim made by the user is then checked and compared to the warrantyto ensure that the claim meet warranty criteria for the requestedservice or replacement. Once validated, the claim is routed to theappropriate agent.

The web customer service component of the present invention may alsoprovide a method and apparatus for handling complaints that allowscomplainants to lodge anonymous complaints against subjects, informs thesubjects of the complaints, permits the subjects to respond to thecomplaints, encourages settlements of the complaints and holds theparties to the complaints accountable for their conduct while attemptingto resolve the complaints.

The method of the present invention is preferably implemented with aprogrammed central computer, a plurality of access terminals, and acommunications network coupling the central computer with the accessterminals. The central computer is programmed to receive complaints andresponses, store the complaints and responses in individual datarecords, and negotiate settlements to the complaints by several meansdescribed in the Detailed Description below. Once the disputes areresolved, the settlements or judgments are stored along with theirrespective complaints and responses in the data records.

The central computer is also programmed to provide public access to thedata records to permit viewing of the corresponding complaints,responses, and settlements for allowing other users to gauge the conductof the subjects and to encourage the subjects to respond to thecomplaints in a timely and satisfactory manner. Moreover, the centralcomputer is programmed to monitor and rate the conduct and performanceof both the complainants and the subjects during the course of thedisputes. The ratings can be used to affect the outcome of the disputesand for other purposes to hold the parties accountable for their conductduring the attempted resolution of the disputes to encourage goodconduct and cooperation between the parties during the course of thedisputes.

Proactive Service Notification

-   Automatically notifies registered customers about needed and    optional upgrades-   Automatically notifies registered customers about possible bugs or    problems and suggested solutions

One embodiment of the present invention is provided for affordingproactive customer support. Registered users are automatically notifiedabout necessary and optional upgrades. See operation 7406 of FIG. 74.Optionally, a description of the upgrade may be included with thenotification, along with recommendations about whether or not to installthe upgrade. Further, registered users are automatically notified ofpossible problems or bugs and solutions are suggested, such asconfiguration changes or downloads.

Referring to FIG. 75, commercial offerings are displayed for a user toreview in operation 7500. The user is allowed to select from thecommercial offerings in operation 7501. In operation 7502, the user isprompted to enter user indicia, which is received in operation 7503. Thesale is completed and the commercial offerings are delivered to the userin operation 7504. The status of the commercial offerings are monitoredutilizing the user indicia in operation 7505. In operation 7506, theuser is notified of the status of the commercial offerings. Thecommercial offerings include at least one of products and services

In use, a user enters the system by purchasing products and/or servicesthrough a website. As part of the purchase transaction or productregistration, the user defines the products and services which the usercurrently possesses or purchases by completing a user profile (userindicia). Incentives and disincentives may be used to influence the userindicia that is entered. Then, the user defines his specific desires forsupport including: levels of support, support channel, methods of use ofthe products and services and future purchasing plans (additional userindicia), which are received in operation 7503. The products andservices which the user identified and/or purchased are monitoredthrough the internet and other means in operation 7504. For example,search engines may scan provider websites for updates and patches,reduced price offerings, etc. Further, a dedicated email addresscorresponding to the user may be used when registering the product withthe manufacturer, thereby providing a central location to receivenotices and promotional material. If an issue with a product is found inoperation 7505 such as a software bug, a factory recall or a reducedprice offering, then the user is notified utilizing his defined channelsuch as mail, email, fax, telephone in operation 7506. If the userencounters an issue and requests support, the support will be providedutilizing the user's preferred channel and at the support levelpurchased by the user.

Consulting Services, Literature, and Partner Referral

-   Lists literature for follow-up consulting-   Provides referrals to match customer-entered needs (internal or    third party)-   Routes consulting leads to external systems

The web customer service component of the present invention listsliterature for follow-up consulting. Further, referrals are provided tomatch user-entered needs, whether the referrals are internal or from athird party. Also, consulting leads are routed to external systems.

Security Services

As shown in component 5314 of FIG. 53A, one embodiment of the presentinvention is provided for affording a combination of security-relatedservices. Various features are included, such as permitting remote login as well as restricting access to various resources to authorizedusers only. As an option, permission may need to be granted beforecertain activities are performed by a user or users.

Referring to FIG. 76, operation 7600 allows browser-based authenticationwith user verification data. In operation 7602, access is granted toapplication and/or system data based on the user verification data,which may be stored in a user's browser. Virtual private networking isprovided in operation 7604.

Rights and Control Information

In general, the present invention can be used to protect the rights ofparties who have:

-   (a) proprietary or confidentiality interests in electronic    information. It can, for example, help ensure that information is    used only in authorized ways;-   (b) financial interests resulting from the use of electronically    distributed information. It can help ensure that content providers    will be paid for use of distributed information; and-   (c) interests in electronic credit and electronic currency storage,    communication, and/or use including electronic cash, banking, and    purchasing.

Protecting the rights of electronic community members involves a broadrange of technologies. WAF combines these technologies in a way thatcreates a “distributed” electronic rights protection “environment.” Thisenvironment secures and protects transactions and other processesimportant for rights protection. WAF, for example, provides the abilityto prevent, or impede, interference with and/or observation of,important rights related transactions and processes. WAF, in itspreferred embodiment, uses special purpose tamper resistant SecureProcessing Units (SPUs) to help provide a high level of security for WAFprocesses and information storage and communication.

The rights protection problems solved by the present invention areelectronic versions of basic societal issues. These issues includeprotecting property rights, protecting privacy rights, properlycompensating people and organizations for their work and risk,protecting money and credit, and generally protecting the security ofinformation. WAF employs a system that uses a common set of processes tomanage rights issues in an efficient, trusted, and cost-effective way.

WAF can be used to protect the rights of parties who create electroniccontent such as, for example: records, games, movies, newspapers,electronic books and reference materials, personal electronic mail, andconfidential records and communications. The invention can also be usedto protect the rights of parties who provide electronic products, suchas publishers and distributors; the rights of parties who provideelectronic credit and currency to pay for use of products, for example,credit clearinghouses and banks; the rights to privacy of parties whouse electronic content (such as consumers, business people,governments); and the privacy rights of parties described by electronicinformation, such as privacy rights related to information contained ina medical record, tax record, or personnel record.

In general, the present invention can protect the rights of parties whohave:

-   (a) commercial interests in electronically distributed    information—the present invention can help ensure, for example, that    parties, will be paid for use of distributed information in a manner    consistent with their agreement;-   (b) proprietary and/or confidentiality interests in electronic    information—the present invention can, for example, help ensure that    data is used only in authorized ways;-   (c) interests in electronic credit and electronic currency storage,    communication, and/or use—this can include electronic cash, banking,    and purchasing; and-   (d) interests in electronic information derived, at least in part,    from use of other electronic information.    WAF Functional Properties

WAF is a cost-effective and efficient rights protection solution thatprovides a unified, consistent system for securing and managingtransaction processing. WAF can:

-   (a) audit and analyze the use of content,-   (b) ensure that content is used only in authorized ways, and-   (c) allow information regarding content usage to be used only in    ways approved by content users.

In addition, WAF:

-   (a) is very configurable, modifiable, and re-usable;-   (b) supports a wide range of useful capabilities that may be    combined in different ways to accommodate most potential    applications;-   (c) operates on a wide variety of electronic appliances ranging from    hand-held inexpensive devices to large mainframe computers;-   (d) is able to ensure the various rights of a number of different    parties, and a number of different rights protection schemes,    simultaneously;-   (e) is able to preserve the rights of parties through a series of    transactions that may occur at different times and different    locations;-   (f) is able to flexibly accommodate different ways of securely    delivering information and reporting usage; and-   (g) provides for electronic analogues to “real” money and credit,    including anonymous electronic cash, to pay for products and    services and to support personal (including home) banking and other    financial activities.

WAF economically and efficiently fulfills the rights protection needs ofelectronic community members. Users of WAF will not require additionalrights protection systems for different information highway products andrights problems—nor will they be required to install and learn a newsystem for each new information highway application.

WAF provides a unified solution that allows all content creators,providers, and users to employ the same electronic rights protectionsolution. Under authorized circumstances, the participants can freelyexchange content and associated content control sets. This means that auser of WAF may, if allowed, use the same electronic system to work withdifferent kinds of content having different sets of content controlinformation. The content and control information supplied by one groupcan be used by people who normally use content and control informationsupplied by a different group. WAF can allow content to be exchanged“universally” and users of an implementation of the present inventioncan interact electronically without fear of incompatibilities in contentcontrol, violation of rights, or the need to get, install, or learn anew content control system.

The WAF securely administers transactions that specify protection ofrights. It can protect electronic rights including, for example:

-   (a) the property rights of authors of electronic content,-   (b) the commercial rights of distributors of content,-   (c) the rights of any parties who facilitated the distribution of    content,-   (d) the privacy rights of users of content,-   (e) the privacy rights of parties portrayed by stored and/or    distributed content, and-   (f) any other rights regarding enforcement of electronic agreements

WAF can enable a very broad variety of electronically enforcedcommercial and societal agreements. These agreements can includeelectronically implemented contracts, licenses, laws, regulations, andtax collection.

Contrast With Traditional Solutions

Traditional content control mechanisms often require users to purchasemore electronic information than the user needs or desires. For example,infrequent users of shrink-wrapped software are required to purchase aprogram at the same price as frequent users, even though they mayreceive much less value from their less frequent use. Traditionalsystems do not scale cost according to the extent or character of usageand traditional systems cannot attract potential customers who find thata fixed price is too high. Systems using traditional mechanisms are alsonot normally particularly secure. For example, shrink-wrapping does notprevent the constant illegal pirating of software once removed fromeither its physical or electronic package.

Traditional electronic information rights protection systems are ofteninflexible and inefficient and may cause a content provider to choosecostly distribution channels that increase a product's price. In generalthese mechanisms restrict product pricing, configuration, and marketingflexibility. These compromises are the result of techniques forcontrolling information which cannot accommodate both different contentmodels and content models which reflect the many, varied requirements,such as content delivery strategies, of the model participants. This canlimit a provider's ability to deliver sufficient overall value tojustify a given product's cost in the eyes of many potential users. WAFallows content providers and distributors to create applications anddistribution networks that reflect content providers' and users'preferred business models. It offers users a uniquely cost effective andfeature rich system that supports the ways providers want to distributeinformation and the ways users want to use such information. WAFsupports content control models that ensure rights and allow contentdelivery strategies to be shaped for maximum commercial results.

Chain of Handling and Control

WAF can protect a collection of rights belonging to various partieshaving in rights in, or to, electronic information. This information maybe at one location or dispersed across (and/or moving between) multiplelocations. The information may pass through a “chain” of distributorsand a “chain” of users. Usage information may also be reported throughone or more “chains” of parties. In general, WAF enables parties that(a) have rights in electronic information, and/or (b) act as direct orindirect agents for parties who have rights in electronic information,to ensure that the moving, accessing, modifying, or otherwise using ofinformation can be securely controlled by rules regarding how, when,where, and by whom such activities can be performed.

WAF Applications and Software

WAF is a secure system for regulating electronic conduct and commerce.Regulation is ensured by control information put in place by one or moreparties. These parties may include content providers, electronichardware manufacturers, financial service providers, or electronic“infrastructure” companies such as cable or telecommunicationscompanies. The control information implements “Rights Applications.”Rights applications “run on” the “base software” of the preferredembodiment. This base software serves as a secure, flexible, generalpurpose foundation that can accommodate many different rightsapplications, that is, many different business models and theirrespective participant requirements.

A rights application under WAF is made up of special purpose pieces,each of which can correspond to one or more basic electronic processesneeded for a rights protection environment. These processes can becombined together like building blocks to create electronic agreementsthat can protect the rights, and may enforce fulfillment of theobligations, of electronic information users and providers. One or moreproviders of electronic information can easily combine selected buildingblocks to create a rights application that is unique to a specificcontent distribution model. A group of these pieces can represent thecapabilities needed to fulfill the agreement(s) between users andproviders. These pieces accommodate many requirements of electroniccommerce including:

-   the distribution of permissions to use electronic information;-   the persistence of the control information and sets of control    information managing these permissions;-   configurable control set information that can be selected by users    for use with such information;-   data security and usage auditing of electronic information; and-   a secure system for currency, compensation and debit management.

For electronic commerce, a rights application, under the preferredembodiment of the present invention, can provide electronic enforcementof the business agreements between all participants. Since differentgroups of components can be put together for different applications, thepresent invention can provide electronic control information for a widevariety of different products and markets. This means the presentinvention can provide a “unified,” efficient, secure, and cost-effectivesystem for electronic commerce and data security. This allows WAF toserve as a single standard for electronic rights protection, datasecurity, and electronic currency and banking.

In a WAF, the separation between a rights application and its foundationpermits the efficient selection of sets of control information that areappropriate for each of many different types of applications and uses.These control sets can reflect both rights of electronic communitymembers, as well as obligations (such as providing a history of one'suse of a product or paying taxes on one's electronic purchases) WAFflexibility allows its users to electronically implement and enforcecommon social and commercial ethics and practices. By providing aunified control system, the present invention supports a vast range ofpossible transaction related interests and concerns of individuals,communities, businesses, and governments. Due to its open design. WAFallows (normally under securely controlled circumstances) applicationsusing technology independently created by users to be “added” to thesystem and used in conjunction with the foundation of the invention. Insum, WAF provides a system that can fairly reflect and enforceagreements among parties. It is a broad ranging and systematic solutionthat answers the pressing need for a secure, cost-effective, and fairelectronic environment.

WAF prevents many forms of unauthorized use of electronic information,by controlling and auditing (and other administration of use)electronically stored and/or disseminated information. This includes,for example, commercially distributed content, electronic currency,electronic credit, business transactions (such as EDI), confidentialcommunications, and the like. WAF can further be used to enablecommercially provided electronic content to be made available to usersin user defined portions, rather than constraining the user to useportions of content that were “predetermined” by a content creatorand/or other provider for billing purposes.

WAF, for example, can employ:

-   (1) Secure metering means for budgeting and/or auditing electronic    content and/or appliance usage;-   (2) Secure flexible means for enabling compensation and/or billing    rates for content and/or appliance usage, including electronic    credit and/or currency mechanisms for payment means;-   (3) Secure distributed database means for storing control and usage    related information (and employing validated compartmentalization    and tagging schemes);-   (4) Secure electronic appliance control means;-   (5) A distributed, secure, “virtual black box” comprised of nodes    located at every user (including WAF content container creators,    other content providers, client users, and recipients of secure WAF    content usage information) site. The nodes of said virtual black box    normally include a secure subsystem having at least one secure    hardware element (a semiconductor element or other hardware module    for securely executing WAF control processes), said secure    subsystems being distributed at nodes along a pathway of information    storage, distribution, payment, usage, and/or auditing. In some    embodiments, the functions of said hardware element, for certain or    all nodes, may be performed by software, for example, in host    processing environments of electronic appliances;-   (6) Encryption and decryption means;-   (7) Secure communications means employing authentication, digital    signaturing, and encrypted transmissions. The secure subsystems at    said user nodes utilize a protocol that establishes and    authenticates each node's and/or participant's identity, and    establishes one or more secure host-to-host encryption keys for    communications between the secure subsystems; and-   (8) Secure control means that can allow each WAF installation to    perform WAF content authoring (placing content into WAF containers    with associated control information), content distribution, and    content usage; as well as clearinghouse and other administrative and    analysis activities employing content usage information.

WAF extensively employs methods in the form of software objects toaugment configurability, portability, and security of the WAFenvironment. It also employs a software object architecture for WAFcontent containers that carries protected content and may also carryboth freely available information (e.g., summary, table of contents) andsecured content control information which ensures the performance ofcontrol information. Content control information governs content usageaccording to criteria set by holders of rights to an object's contentsand/or according to parties who otherwise have rights associated withdistributing such content (such as governments, financial creditproviders, and users).

In part, security is enhanced by object methods employed by the presentinvention because the encryption schemes used to protect an object canefficiently be further used to protect the associated content controlinformation (software control information and relevant data) frommodification. Said object techniques also enhance portability betweenvarious computer and/or other appliance environments because electronicinformation in the form of content can be inserted along with (forexample, in the same object container as) content control information(for said content) to produce a “published” object. As a result, variousportions of said control information may be specifically adapted fordifferent environments, such as for diverse computer platforms andoperating systems, and said various portions may all be carried by a WAFcontainer.

An objective of WAF is supporting a transaction/distribution controlstandard. Development of such a standard has many obstacles, given thesecurity requirements and related hardware and communications issues,widely differing environments, information types, types of informationusage, business and/or data security goals, varieties of participants,and properties of delivered information. A significant feature of WAFaccommodates the many, varying distribution and other transactionvariables by, in part, decomposing electronic commerce and data securityfunctions into generalized capability modules executable within a securehardware SPU and/or corresponding software subsystem and furtherallowing extensive flexibility in assembling, modifying, and/orreplacing, such modules (e.g. load modules and/or methods) inapplications run on a WAF installation foundation. This configurabilityand reconfigurability allows electronic commerce and data securityparticipants to reflect their priorities and requirements through aprocess of iteratively shaping an evolving extended electronic agreement(electronic control model). This shaping can occur as content controlinformation passes from one WAF participant to another and to the extentallowed by “in place” content control information. This process allowsusers of WAF to recast existing control information and or add newcontrol information as necessary (including the elimination of no longerrequired elements).

WAF supports trusted (sufficiently secure) electronic informationdistribution and usage control models for both commercial electroniccontent distribution and data security applications. It can beconfigured to meet the diverse requirements of a network of interrelatedparticipants that may include content creators, content distributors,client administrators, end users, and/or clearinghouses and/or othercontent usage information users. These parties may constitute a networkof participants involved in simple to complex electronic contentdissemination, usage control, usage reporting, and/or usage payment.Disseminated content may include both originally provided and WAFgenerated information (such as content usage information) and contentcontrol information may persist through both chains (one or morepathways) of content and content control information handling, as wellas the direct usage of content. The configurability provided by thepresent invention is particularly critical for supporting electroniccommerce, that is enabling businesses to create relationships and evolvestrategies that offer competitive value. Electronic commerce tools thatare not inherently configurable and interoperable will ultimately failto produce products (and services) that meet both basic requirements andevolving needs of most commerce applications.

Browser Based Authentication

-   Verifies user identity using built-in browser functionality-   Maintains authentication information throughout sessions-   Utilizes centralized directory of profiles-   Provides LDAP compatibility-   Provides NDS compatibility

The security component of the present invention verifies user identityusing built-in browser functionality, allowing for immediate access to auser without requiring installation of additional software.Authentication information may be maintained throughout selected or allsessions to prevent unauthorized users from accessing resources througha registered user's connection.

Optionally, a centralized directory of profiles may be used, which canbe updated regularly as new user information is gathered. Thecentralized directory could also track user movement from page to pageor site to site. Also provided are LDAP and NDS compatibility.

Web Application Entitlement

-   Restricts access to specific web applications based upon user    privileges-   Determines if a user or group of users have permission to perform an    operation in a specific application-   Utilizes centralized directory of profiles for entitlement data-   Provides LDAP compatibility-   Provides NDS compatibility

The security component of the present invention also determines who hasaccess to which resources. One function may be to restrict access tospecific web applications based upon user privileges, which may beearned or purchased, or which may be granted because of administrativeor other duties. Further, the security component may determine if a useror group of users have permission to perform an operation in a specificapplication. Again, a centralized directory of profiles may be used forentitlement data. Also included could be LDAP and NDS compatibility.

Web Data Entitlement

-   Restricts access to web content and data based upon user privileges-   Determines if a user or group of users have permission to manipulate    web data (create, read, update, delete)-   Utilizes centralized directory of profiles for entitlement data-   Provides LDAP compatibility-   Provides NDS compatibility

The security component of the present invention may also restrict accessto web content and data based upon user privileges, which may be earnedor purchased, or which may be granted because of administrative or otherduties. The security component also determines if a user or group ofusers have permission to manipulate web data such as to create, read,update, or delete such data. Again, a centralized directory of profilesmay be used for entitlement data. Also included could be LDAP and NDScompatibility.

Virtual Private Networks

-   Offers guaranteed secure data transfer-   Allows remote login-   Provides ability to grant varying levels of access based on user    identity

The security component of the present invention may also permit users tocreate secure virtual networks between their systems. One example wouldbe two branches of a business in two different cities being connected bya virtual network. Guaranteed secure data transfer may be offered.Further, remote login is allowed. As an option, the ability to grantvarying levels of access based on user identity may be granted. Thiscould include both access to the virtual network, and to any individualresources shared through the network.

Network Services

As shown in component 5316 of FIG. 53A, one embodiment of the presentinvention is provided for controlling the network and managingresources. More detail is provided in FIG. 77. Features include cachingof network content in operation 7700, providing application proxyservices the network in operation 7702, managing resources and loadbalancing such as spreading tasks among servers and rerouting aroundproblems in operation 7704, and managing network objects in operation7706. Operation 7708 controls at least one of bandwidth and speed of thenetwork. Remote log in and access is provided in operation 7710, andaffording firewall services on the network in operation 7712.

Web Content Caching

-   Stores frequently requested web pages and graphics in a temporary    location-   Serves up previously cached content without accessing original    source-   Updates cache automatically to ensure integrity of content

The network services component of the present invention may storefrequently requested web pages and graphics in a temporary location. Inuse, previously cached content can be accessed without accessingoriginal source. This dramatically reduces the time required to outputthe requests web pages and graphics. Preferably, the cache isautomatically updated to ensure the integrity of the content stored inthe cache.

Application Proxy Services

-   Passes requests from external clients to internal web servers and    returns results-   Serves as trusted agent to access machines on the behalf of clients-   Hides IP Addresses of machines from external clients-   Provides configuration control over access permissions-   Provides reverse proxy services

The network services component of the present invention passes requestsfrom external clients to internal web servers and returns results. Thiscomponent may also serve as trusted agent to access machines on thebehalf of clients, particularly useful for automatic upgrades orinformation downloading for offline use. Optionally, IP Addresses ofmachines may be hidden from external clients. Further, configurationcontrol may be provided over access permissions. As another option,reverse proxy services could be provided.

Load Balancing

-   Spreads tasks among application servers using an intelligent    load-balance scheme (e.g., CPU utilization)-   Provides a centralized task distribution mechanism for routing    services-   Identifies servers that are off-line and re-routes traffic

Tasks may be spread among application servers using an intelligentload-balance scheme (e.g., CPU utilization) by the network servicescomponent of the present invention. A centralized task distributionmechanism would route services. Further, servers that are off-line areidentified and traffic is re-routed around them, such as to a parallelor secondary server.

Network Object Management

-   Provides centralized directory to facilitate network object    interactions-   Provides ability to administer network objects (e.g. printers,    routers)

The network services component of the present invention provides acentralized directory to facilitate network object interactions as wellas provides the ability to administer network objects (e.g. printers,routers, and other peripherals).

Quality of Service (Bandwidth)

-   Offers range of speed and bandwidth based on customer profile (e.g.,    larger, higher profile customers get faster service upon request)

The network services component of the present invention also offersselected range of speed and bandwidth based on a user profile. Forexample, larger, higher profile users get faster service upon request.

Remote Access Services (Radius)

-   Enables high density modem pooling-   Provides a single dial-in number for ISDN or Analog calls and an    automatic back-up number if first one does not work-   Creates an Integrated Firewall I authentication-   Allows remote authenticated access to intranet

High density modem pooling is performed by the network servicescomponent of the present invention. Also provided are a single dial-innumber for ISDN or Analog calls and an automatic back-up number if thefirst number does not work or returns a busy signal. Optionally, anintegrated firewall may be created or authorization may be verifiedthrough authentication. Also optionally, remote authenticated access tointranet may be allowed.

Firewall Service

-   Protects resources on a private network from users of other networks-   Filters network traffic based on security rules-   Provides alarm notification of attacks-   Provides logging and reporting functions-   Provides port and traffic control

Firewall services are also provided by the network services component ofthe present invention. These services protect resources on a privatenetwork from users of other networks. Further, network traffic may befiltered based on security rules. An alarm notification may be providedin case of an attack on the system. Also, logging and reportingfunctions may be provided, allowing administrators to track movement andoperations throughout the network as well as being useful for gatheringstatistics. Port and traffic control would also be provided.

Web and Internet Services

As illustrated in component 5318 of FIG. 53, one embodiment of thepresent invention is provided for affording a plurality ofinternet-related services. Among the features included are the actualuploading of web pages to users' computers, encrypting data for securetransmission, storing and transmitting files, processing requests andexecuting programs, and routing email.

In more detail, it is seen in FIG. 78 that operation 7800 provides HTTPpage rendering over a network framework. In operation 7802, securebrowser communication over the network framework is enabled. Electronicmail transport services over the network framework are afforded inoperation 7804. In operation 7806, file transfer services over thenetwork framework are provided. Information of online events is gatheredand logged during online sessions over the network framework inoperation 7808. Applications may also be interfaced via predeterminedprotocols over the network framework. See operation 7810.

Secure WAF hardware (also known as SPUs for Secure Processing Units), orWAF installations that use software to substitute for, or complement,said hardware (provided by Host Processing Environments (HPEs)), operatein conjunction with secure communications, systems integration software,and distributed software control information and support structures, toachieve the electronic contract/rights protection environment of thepresent invention. Together, these WAF components comprise a secure,virtual, distributed content and/or appliance control, auditing (andother administration), reporting, and payment environment. In someembodiments and where commercially acceptable, certain WAF participantssuch as clearinghouses that normally maintain sufficiently physicallysecure non-WAF processing environments, may be allowed to employ HPEsrather WAF hardware elements and interoperate, for example, with WAFend-users and content providers. WAF components together comprise aconfigurable, consistent, secure and “trusted” architecture fordistributed, asynchronous control of electronic content and/or applianceusage. WAF supports a “universe wide” environment for electronic contentdelivery, broad dissemination, usage reporting, and usage relatedpayment activities.

WAF provides generalized configurability. This results, in part, fromdecomposition of generalized requirements for supporting electroniccommerce and data security into a broad range of constituent “atomic”and higher level components (such as load modules, data elements, andmethods) that may be variously aggregated together to form controlmethods for electronic commerce applications, commercial electronicagreements, and data security arrangements. WAF provides a secureoperating environment employing WAF foundation elements along withsecure independently deliverable WAF components that enable electroniccommerce models and relationships to develop. WAF specifically supportsthe unfolding of distribution models in which content providers, overtime, can expressly agree to, or allow, subsequent content providersand/or users to participate in shaping the control information for, andconsequences of, use of electronic content and/or appliances. A verybroad range of the functional attributes important for supporting simpleto very complex electronic commerce and data security activities aresupported by capabilities of the present invention. As a result, WAFsupports most types of electronic information and/or appliance: usagecontrol (including distribution), security, usage auditing, reporting,other administration, and payment arrangements.

WAF, in its preferred embodiment, employs object software technology anduses object technology to form “containers” for delivery of informationthat is (at least in part) encrypted or otherwise secured. Thesecontainers may contain electronic content products or other electronicinformation and some or all of their associated permissions (control)information. These container objects may be distributed along pathwaysinvolving content providers and/or content users. They may be securelymoved among nodes of a Virtual Distribution Environment (WAF)arrangement, which nodes operate WAF foundation software and executecontrol methods to enact electronic information usage control and/oradministration models. The containers delivered through use of thepreferred embodiment of the present invention may be employed both fordistributing WAF control instructions (information) and/or toencapsulate and electronically distribute content that has been at leastpartially secured.

Content providers who employ the present invention may include, forexample, software application and game publishers, database publishers,cable, television, and radio broadcasters, electronic shopping vendors,and distributors of information in electronic document, book,periodical, e-mail and/or other forms. Corporations, governmentagencies, and/or individual “end-users” who act as storers of, and/ordistributors of, electronic information, may also be WAF contentproviders (in a restricted model, a user provides content only tohimself and employs WAF to secure his own confidential informationagainst unauthorized use by other parties). Electronic information mayinclude proprietary and/or confidential information for personal orinternal organization use, as well as information, such as softwareapplications, documents, entertainment materials, and/or referenceinformation, which may be provided to other parties. Distribution may beby, for example, physical media delivery, broadcast and/ortelecommunication means, and in the form of“static” files and/or streamsof data. WAF may also be used, for example, for multi-site “real-time”interaction such as teleconferencing, interactive games, or on-linebulletin boards, where restrictions on, and/or auditing of, the use ofall or portions of communicated information is enforced.

WAF provides important mechanisms for both enforcing commercialagreements and enabling the protection of privacy rights. WAF cansecurely deliver information from one party to another concerning theuse of commercially distributed electronic content. Even if parties areseparated by several “steps” in a chain (pathway) of handling for suchcontent usage information, such information is protected by WAF throughencryption and/or other secure processing. Because of that protection,the accuracy of such information is guaranteed by WAF, and theinformation can be trusted by all parties to whom it is delivered.Furthermore, WAF guarantees that all parties can trust that suchinformation cannot be received by anyone other than the intended,authorized, party(ies) because it is encrypted such that only anauthorized party, or her agents, can decrypt it. Such information mayalso be derived through a secure WAF process at a previouspathway-of-handling location to produce secure WAF reporting informationthat is then communicated securely to its intended recipient's WAFsecure subsystem. Because WAF can deliver such information securely,parties to an electronic agreement need not trust the accuracy ofcommercial usage and/or other information delivered through means otherthan those under to control of WAF.

HTTP-Page Rendering

-   Serves requested web pages and graphics from web servers to client    web browsers-   Supports page rendering for multiple languages-   Supports multiple content sources (file system, databases, scripts)

The internet services component of the present invention servesrequested web pages and graphics from web servers to client webbrowsers. Page rendering for multiple languages may be supported, as maytransmission of data to and from multiple content sources such as filesystems, databases, and scripts.

Secure Browser Communications—SSL

-   Provides encrypted communication with common web browsers-   Supports the Secure Sockets Layer protocol 2.0-   Supports the Secure Sockets Layer protocol 3.0

The internet services component of the present invention providesencrypted communication with common web browsers, essential forcommercial transactions and when transmitting confidential memoranda.The Secure Sockets Layer protocol 2.0 is supported, as is the SecureSockets Layer protocol 3.0.

File Transfer Services (FTP)

-   Transfers files between computers on the Internet using the standard    File Transfer Protocol (FTP)-   Stores files on a file system or database-   Provides mechanism to manage access control for files on a FTP    server

The internet services component of the present invention may permitfiles to be transferred between computers on the Internet using thestandard File Transfer Protocol (FTP). Such files would be stored on afile system or database. Security would also be provided by managingaccess control for files on a FTP server.

Web Application Interface Protocols CGI/NSAPI/ISAPI

-   Supports Common Gateway Interface (CGI) protocol-   Supports Netscape' API (NSAPI) protocol-   Supports Microsoft's API (ISAPI) protocol-   Provides alternative to the interface mechanism that may be used

The internet services component of the present invention would support amultitude of interface protocols. Examples of protocols supported areCommon Gateway Interface (CGI) protocol, Netscape' API (NSAPI) protocol,and Microsoft's API (ISAPI) protocol. Further, alternative interfacemechanisms may be provided for use instead of the default mechanism.

Web Application Server

-   Executes web application logic-   Utilizes user session information to support interactive    applications-   Provides scalability features-   Provides fail-over features-   Provides application programming logic

The internet services component of the present invention also executesweb application logic. User session information is utilized to supportinteractive applications as well as for statistical purposes.Scalability features may be provided, as may fail-over features.Application programming logic may also be provided.

State and Session Management

-   Provides mechanism to note and remember one or more preceding events    in a given sequence of interactions with the user or application    program-   Tracks state and session information-   Manages multiple independent user sessions that are simultaneously    active-   Supports Client Cookies-   Supports Client URL Encoding-   Supports Server Information with Client Cookies-   Supports Server Information with URL. Session Identifiers

The internet services component of the present invention may provide amechanism to note and remember one or more preceding events in a givensequence of interactions with the user or application program. State andsession information may be tracked. Multiple independent user sessionsthat are simultaneously active may be managed. Support is provided foruser cookies, server information with user cookies, client URL encoding,and server information with URL session identifiers.

Email Transport Services

-   Routes inbound and outbound email messages to the appropriate email    servers-   Filters incoming messages and blocks junk mail-   Queues messages for delivery-   Provides backup and restore capabilities for stored email

The internet services component of the present invention routes inboundand outbound email messages to the appropriate email servers, where theyare queued for delivery. Optional features could include filtering ofincoming messages and blocking junk mail, as well as providing backupand restore capabilities for stored email.

Client Services

As shown in component 5320 of FIG. 53A, one embodiment of the presentinvention is provided for affording a plurality of clientservice-related services. Referring to FIG. 79, among the featuresincluded are managing client verification data for user authenticationpurposes in a network framework in operation 7900. In operation 7902,electronic mail capabilities in the network framework are provided.Network framework browsing in the network framework is provided inoperation 7904. File in transfer capabilities in the network framework,news reader capabilities in the network framework, and chat roomcapabilities in the network framework are provided in operations 7906,7908, and 7910, respectively. Playback capabilities in the networkframework are enabled in operation 7912. Financial transactionalcapabilities in the network framework are also provided. Note operation7914.

Certificates

Manages client certificates for user authentication

The client services component of the present invention manages clientcertificates used for user authentication. These include certificatesused to identify a user during automatic log on.

Plug-Ins and Network Utilities

-   Provides email capabilities-   Provides Internet browser-   Provides telnet capabilities-   Provides FTP capabilities-   Provides news reader-   Provides chat capabilities-   Provides specialized plug-ins for specific functions (e.g., video)-   Provides audio playback capabilities-   Supports Java-   Provides electronic wallet capabilities

The client services component of the present invention provides severalservices. These services may include email capabilities, access to anInternet browser, telnet capabilities, and FTP capabilities. A newsreader could be provided, as could chat capabilities. Specializedplug-ins could be offered for specific functions such as audio andvideo. Support for JAVA may be included. Optionally, electronic walletcapabilities could be provided as well.

Data Services

As illustrated in component 5324 of FIG. 53, one embodiment of thepresent invention is provided for affording a combination ofdata-related services. Several features are included such as sorting,storing, and transferring data. As shown in FIG. 80, in operation 8000data access from multiple simultaneous data sources over a networkframework is provided. Application data is stored over the networkframework in operation 8002.

Data Access Adapters

-   Supports native database access: Oracle. Informix, Sybase, MS SQL    Server-   Supports ODBC-   Supports JDBC-   Provides mechanism to import and export data from external systems-   Supports data transfer in multiple languages-   Supports multiple simultaneous data sources-   Provides data connection pooling-   Provides a common data access language across all data sources-   Provides reporting and logging functions to detect communication    errors

The data service component of the present invention supports nativedatabase access such as Oracle, Informix, Sybase, and MS SQL Server, aswell as ODBC and JDBC. A mechanism is also provided to import and exportdata from external systems. Data transfer in multiple languages issupported. Multiple simultaneous data sources may be used. Dataconnection pooling may be provided. A common data access language may beused across all data sources. Reporting and logging functions may alsobe provided to detect communication errors.

Application Data Storage

-   Supports storage of application specific data-   Maintains and verifies integrity of application data-   Provides methods for administrators and user to manage data-   Provides replication and synchronization capabilities-   Supports ODBC

The data service component of the present invention supports storage ofapplication specific data as well as maintains and verifies theintegrity of application data. Several different methods to manage datamay be provided, allowing administrators and users to choose theirpreferred method. Replication and synchronization capabilities may beincluded. Preferably, ODBC is supported.

Data delivery means may include electronic data storage means such asoptical disks for delivering one portion of said information andbroadcasting and/or telecommunicating means for other portions of saidinformation. Electronic data storage means may include magnetic media,optical media, combined magneto-optical systems, flash RAM memory,bubble memory, and/or other memory storage means such as huge capacityoptical storage systems employing holographic, frequency, and/orpolarity data storage techniques. Data storage means may also employlayered disc techniques, such as the use of generally transparent and/ortranslucent materials that pass light through layers of data carryingdiscs which themselves are physically packaged together as one thickerdisc. Data carrying locations on such discs may be, at least in part,opaque.

Integration Capabilities

As shown in component 5322 of FIG. 53B, one embodiment of the presentinvention is provided for affording a combination of integrationcapabilities-related services. Referring to FIG. 81, it is seen thatmany features are provided, including integration with financial andsales systems. See operations 8100 and 8102. Also, human resourcesystems may be combined over the network framework in operation 8104.Further, integration with call centers, as in operation 8106, and thirdparty systems may also be included.

Financials Integration

-   Provides adapter or mechanism to communicate and transfer data at    the functional level with Financial systems via real-time API's-   Provides adapter or mechanism to communicate and transfer data at    the functional level with Financial systems via batch API's-   Supports AP's for external integration-   Supports Data Access Adapter capabilities

The integration capabilities component of the present invention mayprovide an adapter or mechanism to communicate and transfer data at thefunctional level with financial systems via real-time API's. Furtherprovided may be an adapter or mechanism to communicate and transfer dataat the functional level with financial systems via batch AP's.Preferably, API's for external integration are supported. Data AccessAdapter capabilities may also be supported.

Sales Force Integration

-   Provides adapter or mechanism to communicate and transfer data at    the functional level with Sales Force systems via real-time API's-   Provides adapter or mechanism to communicate and transfer data at    the functional level with Sales Force systems via batch API's-   Supports API's for external integration-   Supports Data Access Adapter capabilities

The integration capabilities component of the present invention providesan adapter or mechanism to communicate and transfer data at thefunctional level with sales force systems via real-time API's as well asvia batch API's. API's for external integration may be supported. DataAccess Adapter capabilities may also be supported.

ERP Integration

-   Provides adapter or mechanism to communicate and transfer data at    the functional level with ERP systems via real-time API's-   Provides adapter or mechanism to communicate and transfer data at    the functional level with ERP systems via batch API's-   Supports API's for external integration-   Supports Data Access Adapter capabilities

The integration capabilities component of the present invention providesan adapter or mechanism to communicate and transfer data at thefunctional level with ERP systems via real-time API's as well as viabatch API's. Preferably. API's for external integration are supported.Data Access Adapter capabilities may also be supported.

Human Resources Integration

-   Provides adapter or mechanism to communicate and transfer data at    the functional level with Human Resources systems via real-time    API's-   Provides adapter or mechanism to communicate and transfer data at    the functional level with Human Resources systems via batch API's-   Supports API's for external integration-   Supports Data Access Adapter capabilities

The integration capabilities component of the present invention mayprovide an adapter or mechanism to communicate and transfer data at thefunctional level with human resources systems via real-time API's.Further provided may be an adapter or mechanism to communicate andtransfer data at the functional level with human resources systems viabatch API's. API's for external integration may be supported. DataAccess Adapter capabilities may also be supported.

Call Center Integration

-   Supports CTI integration from the web-   Provides adapter or mechanism to communicate and transfer data at    the functional level with Call Center systems via real-time API's-   Provides adapter or mechanism to communicate and transfer data at    the functional level with Call Center systems via batch API's-   Supports API's for external integration-   Supports Data Access Adapter capabilities

CTI integration from the web is supported by the integrationcapabilities component of the present invention. An adapter or mechanismto communicate and transfer data at the functional level with callcenter systems via real-time API's may be provided. An adapter ormechanism to communicate and transfer data at the functional level withcall center systems via batch API's may also be provided.

Preferably, API's for external integration are supported. Data AccessAdapter capabilities may also be supported.

Transaction Integration (Fulfillment/Payment/3rd Party)

-   Provides adapter or mechanism to transfer transactional information    to a fulfillment house, payment processing center or other third    party-   Provides reporting and logging functions to detect communication    errors

The integration capabilities component of the present invention mayprovide an adapter or mechanism to transfer transactional information toa fulfillment house, payment processing center, or a third party. As anoption, reporting and logging functions may be used to detectcommunication errors.

3rd Party Integration Capabilities (Content, Training)

-   Provides adapter or mechanism to communicate with external systems    that provide additional content such as catalog information-   Provides reporting and logging functions to detect communication    errors

The integration capabilities component of the present invention may alsoprovide an adapter or mechanism to communicate with external systemsthat provide additional content such as catalog information. Again,reporting and logging functions may be used to detect communicationerrors.

Miscellaneous Services

As shown in component 5326 of FIG. 53B, one embodiment of the presentinvention is provided for affording a combination of miscellaneouscapabilities in a web architecture framework. See FIG. 82. Stepsincluded are providing locator capabilities and streaming data over thenetwork framework in operation 8200. Further, searching capabilities areprovided over the network framework in addition to logging events andpassive profiling. In operation 8202, streaming video and/or audio datais transmitted over the network framework. Various events may be loggedover the network framework. Note operation 8204. User profileinformation is passively managed over the network framework in operation8206.

Locator Capabilities—Channel Partners, Ed. Centers

-   Provides proximity-based mapping-   Enables control of search parameters-   Creates interactive maps-   Provides multi-criteria proximity search-   Enables dynamic map navigation-   Permits customizable page design-   Displays table of query results-   Allows user to print maps by one click

Mapping functions may be provided by the present invention, includingproximity-based mapping and interactive mapping. Controls of searchparameters would be provided, and could include multi-criteria proximitysearching. Dynamic map navigation may be enabled. A table of queryresults would be displayed. The maps displayed would be printable.Optionally, customizable page design could be permitted, such asallowing a user to personalize mapping based on his or her favoritedestinations.

Streaming Video & Audio Capabilities

-   Provides streaming video download-   Provides content creation capabilities (e.g. recording, video    transfer)-   Provides stereo audio-   Delivers end-user multimedia across all bandwidths-   Offers customizable web-based server administration and reporting to    aid business management-   Provides enhanced security for sensitive or pay-per-view content-   Integrates with existing back office applications-   Develops customized applications and leverages content in existing    formats-   Offers ability to scale with additional hardware-   Supports multiple concurrent users

Streaming audio and video downloads may be available. Examples couldinclude live radio and television programs, as well as previouslygenerated or recorded video and audio clips. Ideally, audio would beproduced in stereo. Optional features could include content creationcapabilities, e.g., recording, video transfer, etc.

End-user multimedia may be delivered across all bandwidths. As anoption, customizable web-based server administration and reporting couldbe offered to aid business management. Enhanced security would be usedfor sensitive or pay-per-view content. Ideally, multimedia capabilitieswould integrate with existing back office applications. Customizedapplications and leveraged content could be created in existing formats.Also offered could be the ability to scale with additional hardware.Ideally, the multimedia components support multiple concurrent users.

Search Capabilities

-   Indexes file-based content-   Indexes database content-   Indexes 3rd party content-   Supports multiple indices and multiple content sources-   Provides basic search options (product number, name)-   Provides keyword searching-   Provides question-based searching-   Provides advanced flexible searching tools (parametric)-   Support searching using multiple languages-   Supports programmable filters-   Supports multiple languages

The present invention may index various types of system content,including file-based content, database content, and 3rd party content.Preferably, multiple indices and multiple content sources are supported.Many modes of searching may be offered. Basic search options couldinclude product number or name. Keyword searching may be allowed, as mayquestion-based searching. Advanced flexible searching tools, such asparametric tools, may be used. Examples include searching using multiplelanguages. Ideally, programmable filters may be used to filter outunwanted content. Also ideally, the user interface supports multiplelanguages.

Web Event Logging

-   Makes observation logs and event histories available for structured    and ad-hoc reporting and analysis-   Provides log management and archiving functions

The present invention may make observation logs and event historiesavailable for structured and ad-hoc reporting and analysis. Thisinformation would also be useful for tracking unauthorized access torestricted content. Also provided may be log management and archivingfunctions.

Passive Profiling Capabilities

-   Manages and leverages profile information-   Maintains identity and state for each user-   Adds preference and interest information for each customer's    personal profile

The present invention may manage and leverage profile information. Theidentity and state for each user would be maintained. Preference andinterest information for each customer's personal profile may also beadded.

Directory Services

As shown in component 5328 of FIG. 53B, one embodiment of the presentinvention is provided for affording a combination of directory-relatedservices. In operation 8300 of FIG. 83 user profile data is validated ina system. The user profile data in the system is managed in operation8302 and stored in operation 8304, while network object data in thesystem is managed in operation 8306 and stored in operation 8308.Community profile data may be assigned to a community including aplurality of users in the system. See operation 8310. Community profiledata is validated in the system in operation 8312, managed in the systemin operation 8314, and stored in the system in operation 8316.

Validation Management & Storage of Base Profile Data

-   Maintains and verifies integrity of user profile information such as    username, password, user groups-   Provides methods for administrators and users to manage user profile    information-   Organizes and stores user profile data in permanent storage space-   Provides replication and synchronization capabilities-   Supports LDAP-   Supports NDS-   Supports ODBC

The directory services component of the present invention maintains andverifies integrity of user profile information such as username,password, user groups, and the like. Several methods may be provided foradministrators and users to manage user profile information, which isorganized and stored in permanent storage space. Optionally, replicationand synchronization capabilities may be provided. Ideally, support isprovided for LDAP, NDS, ODBC, and others.

Assignment of User Profiles to Communities

-   Adds site-specific information to each person's profile provided the    individual gives consent-   Allows user to choose to belong to a particular community-   Allows user to be remove himself from a particular community or    change community

The directory services component of the present invention may addsite-specific information to each user's profile provided the user givesconsent. Further, each user may be allowed to choose to belong to aparticular community made up of other users. A user would also be ableremove himself or herself from a particular community as well as changeto a different community.

Validation, Management, & Storage of Base Community Data

-   Maintains and verifies integrity of community data information such    as users assigned to a specific community-   Provides methods for administrators to manage community information-   Organizes and stores community data in permanent storage space

The integrity of community data information such as users assigned to aspecific community would be maintained and verified by the directoryservices component of the present invention. Administrators would alsobe provided with methods to manage community information. Ideally,community data is organized and stored in permanent storage space.

Management & Storage of Network Object Data

-   Organizes and stores network object data in permanent storage space-   Provides replication and synchronization capabilities-   Supports LDAP-   Supports NDS

The directory services component of the present invention organizes andstores network object data in permanent storage space as well asprovides replication and synchronization capabilities. Ideally, supportis offered for LDAP and NDS, among others.

Management and Operations

As illustrated in component 5330 of FIG. 53B, one embodiment of thepresent invention is provided for affording a combination of managementand operation-related services. Features include billing for usage ofparticular sites, monitoring site performance, creating and managinguser profiles, and scheduling of operations and functions such assoftware updates.

Referring to FIG. 84, auditing of administrative data in a system isperformed in operation 8400. Data from log files in the system isanalyzed in operation 8402. In operation 8404, rules and policies aremanaged in the system. Usage in the system is audited in operation 8406while billing for the usage in the system is performed in operation8408. Performance in the system is monitored in operation 8410.Communities of users may be managed in the system. See operation 8412.In operation 8414, backup capabilities are provided in the system, as isnetwork application staging in operation 8416.

Administrative Auditing

-   Provides ability to track frequency of usage for specific functions    on site (e.g. shopping cart, etc.)-   Provides ability to track frequency of usage by specific users-   Provides ability to track custom metrics

The management and operations component of the present inventionprovides the ability to track frequency of usage for specific functionson a site. One example includes the frequency of usage of the shoppingcart, etc. Ideally, the frequency of usage by specific users can betracked. Also ideally, custom metrics can also be tracked.

Log Analysis Capabilities

-   Extracts and analyzes data from log files and other sources-   Generates predefined and ad-hoc reports based upon log and data    analysis-   Identifies trends and forecast performance based upon analysis-   Provides advanced data analysis and report programming tools

The management and operations component of the present invention may beused to extract and analyzes data from log files and other sources.Predefined and ad-hoc reports may be generated based upon log and dataanalysis. Trends may be identified and performance forecast based uponanalysis of preselected factors. Ideally, advanced data analysis andreport programming tools are available.

Rules & Policy Management

-   Manages rules for common capabilities such as advertisements and    promotions-   Manages policies for operations such as authorization and access    control for user groups and content-   Logs policy changes

The management and operations component of the present invention managesrules for common capabilities such as advertisements and promotions.Also managed are policies for operations such as authorization andaccess control for user groups and content. Policy changes are logged.

Auditing and Billing for Usage (Charge-Back)

-   Provides ability to track usage of site to specific users and bill    for that usage

The ability to track usage of a site to specific users and bill for thatusers is provided by the management and operations component of thepresent invention. For example, a user would be billed for belonging toa site requiring a monthly fee for viewing.

Web Performance Monitoring Capabilities

-   Monitors production web site performance and traffic-   Provides automatic alarm for performance thresholds-   Generates reports based upon past performance

The management and operations component of the present invention maymonitor production web site performance and traffic. An automatic alarmmay be set to go off when performance thresholds are being approached orexceeded. As an option, reports may be generated based upon pastperformance.

Network Management

-   Centrally creates and manages policies and user profiles-   Centrally creates hardware inventories for workstations    automatically-   Centrally configures printers-   Offers centralized application installation-   Assigns application rights to groups or individuals-   Creates standard desktop environment for some or all users-   Offers load balancing-   Offers automatic transparent transfer across multiple servers-   Provides remote help desk utilities for software-related problems

The management and operations component of the present inventioncentrally creates and manages policies and user profiles. Hardwareinventories for workstations may also be automatically centrallycreated. Printers are centrally configured and loads are balanced.Centralized application installation may be offered. As an option,particular application rights may be assigned to groups or individualsand a standard desktop environment may be offered to some or all users.Ideally, automatic transparent transfer across multiple servers ispermitted. Optionally, remote help desk utilities for software-relatedproblems are provided.

Community & Role Management

-   Defines communities of visitors based on common characteristics and    preferences-   Dynamically assigns user to community based on profile-   Updates community attributes

The management and operations component of the present invention maydefine communities of visitors based on common characteristics andpreferences. Users may be dynamically assigned to particular communitiesbased on their profiles. Ideally, community attributes are periodicallyupdated.

Redundancy/Backup Capabilities

-   Restores deleted application files an corrupted files/settings    automatically-   Provides component failover capabilities

The management and operations component of the present invention mayrestore deleted application files as well as corrupted files and settingautomatically. Also provided may be component failure capabilities.

Web APP, Admin Capabilities (Store, Training, Service)

-   Provides catalog administrative capabilities (add products, change    prices)-   Provides application administration tools (restart application)

The management and operations component of the present invention mayprovide catalog administrative capabilities. Such capabilities could addproducts, change prices, etc. Application administration tools could beprovided as well. For example, such administration tools could restartan application when necessary, such as after an automatic softwareupdate or where the application has stopped responding.

Configuration Management Capabilities

-   Provides centralized application installation-   Schedules software updates to occur at a specific time (e.g. certain    days, off-peak hours)-   Creates standard environment for applications-   Assigns application rights to groups or individuals-   Blocks unauthorized deletion of network-installed applications-   Integrates with web applications revision control system-   Provides logging mechanism to track configuration change requests

Centralized application installation may be provided by the managementand operations component of the present invention. Software updates maybe scheduled to occur at a specific time, such as on certain days orduring off-peak hours. Application rights may be assigned to groups orindividuals, and unauthorized deletion of network-installed applicationswould be blocked. Ideally, the management and operations component ofthe present invention integrates with the revision control systems ofweb applications. Optionally, a logging mechanism may be provided fortracking configuration change requests. As another option, standardenvironments for applications may be created.

Web Application Staging

-   Provides ability to preview, test and change applications before    production stage-   Provides ability to schedule releases (e.g. time-based batch    release, individual immediate release, etc.)

The ability to preview, test and change applications before productionstage may be provided by the management and operations component of thepresent invention, as may the ability to schedule releases, such astime-based batch releases, individual immediate releases, and the like.

Web Developer Services

As shown in component 5332 of FIG. 53B, one embodiment of the presentinvention is provided for affording a combination of webdevelopment-related services. Various features may be included, such asdevelopment tools, utilities, and testing tools, as are provided inoperation 8500 of FIG. 85. System applications are debugged in operation8502. In operation 8504, the generation of revisions of the systemapplications is controlled, and in operation 8506, the operability ofthe system applications are tested.

Web Application Development Tools

-   Provides application languages, tools, and utilities-   Automatically generates site maps for user's collection of pages-   Automatically tests local and remote hyperlinks-   Coordinates file reuse among projects-   Integrates with revision control system

The web development component of the present invention may provideapplication languages, tools, and utilities. A site maps of a collectionof pages of a particular user may be automatically generated. Further,local and remote hyperlinks may be automatically tested. As an option,file reuse among projects may be coordinated. Ideally, the managementand operations component of the present invention integrates with arevision control system.

Web Application Debugging Utilities

-   Offers step-through debugging tool-   Automatically compiles finished code to test technical correctness-   Offers auto-correction for common errors-   Automatically checks all links off of site for validity-   Provides ability to set variable watches-   Provides ability to set program break points-   Provides ability to log to a debugging file

The web development component of the present invention may offer astep-through debugging tool, which could guide a user through a seriesof diagnostic tests aimed at identifying and resolving problems causingerrors. Preferably, finished code is automatically compiled to test itstechnical correctness. Optionally, auto-correction of common errors maybe a feature. Also optionally, all links off of a site may beautomatically checked for validity. The ability to set variable watchesmay be provided, as may the ability to set program break points and logto a debugging file.

Web Application Revision Control

-   Stores current files along with past changes to does to allow easy    recreation of previous versions-   Allows user to set various access levels to assign user- and    project-specific authorization-   Allows user to tailor custom file access rights-   Reconciles file changes from multiple users to prevent accidental    code overwriting-   Speeds up performance by allowing direct access to most recent    files, leaving delta storage for previous versions-   Ensures each user kept in sync with rest of the team by comparing    the user's personal working directory with the corresponding shared    project-   Allows specific versions of files to be grouped to identify    application builds

The web development component of the present invention may store currentfiles along with past changes to does to allow easy re-creation ofprevious versions. Users may be allowed to set various access levels toassign user- and project-specific authorization. Preferably, users areallowed to tailor custom file access rights.

Optionally, file changes from multiple users may be reconciled toprevent accidental code overwriting as well as for speeding upperformance by allowing direct access to most recent files, leavingdelta storage for previous versions. The web development component ofthe present invention ensures each user is kept in sync with the rest ofthe team by comparing the user's personal working directory with thecorresponding shared project. Specific versions of files may be allowedto be grouped to identify application builds.

Web Site Testing Tools (Performance & Link Spiders)

-   Simulates multiple users on web site-   Allows pages to be retrieved and programmatically navigated by    simulated clients-   Logs error messages-   Records performance statistics-   Enables programmatic control of load generation-   Allows tests to be scheduled and load to be varied over time

The web development component of the present invention may test a website, such as by simulating multiple users on web site. Pages may beretrieved and programmatically navigated by simulated clients. Errormessages are logged and performance statistics are recorded.Programmatic control of load generation may be enabled. Tests can bescheduled and loaded to be varied over time.

While various embodiments have been described above, it should beunderstood that they have been presented by way of example only, and notlimitation. Thus, the breadth and scope of a preferred embodiment shouldnot be limited by any of the above described exemplary embodiments, butshould be defined only in accordance with the following claims and theirequivalents.

WAF provides organization, community, and/or universe wide secureenvironments whose integrity is assured by processes securely controlledin WAF participant user installations (nodes). WAF installations, in thepreferred embodiment, may include both software and tamper resistanthardware semiconductor elements. Such a semiconductor arrangementcomprises, at least in part, special purpose circuitry that has beendesigned to protect against tampering with, or unauthorized observationof, the information and functions used in performing the WAF's controlfunctions. The special purpose secure circuitry provided by the presentinvention includes at least one of a dedicated semiconductor arrangementknown as a Secure Processing Unit (SPU) and/or a standardmicroprocessor, microcontroller, and/or other processing logic thataccommodates the requirements of the present invention and functions asan SPU. WAF's secure hardware may be found incorporated into, forexample, a fax/modem chip or chip pack, I/O controller, video displaycontroller, and/or other available digital processing arrangements. Itis anticipated that portions of the present invention's WAF securehardware capabilities may ultimately be standard design elements ofcentral processing units (CPUs) for computers and various otherelectronic devices.

Designing WAF capabilities into one or more standard microprocessor,microcontroller and/or other digital processing components maymaterially reduce WAF related hardware costs by employing the samehardware resources for both the transaction management uses contemplatedby the present invention and for other, host electronic appliancefunctions. This means that a WAF SPU can employ (share) circuitryelements of a “standard” CPU. For example, if a “standard” processor canoperate in protected mode and can execute WAF related instructions as aprotected activity, then such an embodiment may provide sufficienthardware security for a variety of applications and the expense of aspecial purpose processor might be avoided. Under one preferredembodiment of the present invention, certain memory (e.g., RAM, ROM,NVRAM) is maintained during WAF related instruction processing in aprotected mode (for example, as supported by protected modemicroprocessors). This memory is located in the same package as theprocessing logic (e.g. processor). Desirably, the packaging and memoryof such a processor would be designed using security techniques thatenhance its resistance to tampering.

The degree of overall security of the WAF system is primarily dependenton the degree of tamper resistance and concealment of WAF controlprocess execution and related data storage activities. Employing specialpurpose semiconductor packaging techniques can significantly contributeto the degree of security. Concealment and tamper-resistance insemiconductor memory (e.g., RAM, ROM, NVRAM) can be achieved, in part,by employing such memory within an SPU package, by encrypting databefore it is sent to external memory (such as an external RAM package)and decrypting encrypted data within the CPU/RAM package before it isexecuted. This process is used for important WAF related data when suchdata is stored on unprotected media, for example, standard host storage,such as random access memory, mass storage, etc. In that event, a WAFSPU would encrypt data that results from a secure WAF execution beforesuch data was stored in external memory.

Summary of Some Important Features Provided by WAF in Accordance withthe Present Invention

WAF employs a variety of capabilities that serve as a foundation for ageneral purpose, sufficiently secure distributed electronic commercesolution. WAF enables an electronic commerce marketplace that supportsdivergent, competitive business partnerships, agreements, and evolvingoverall business models. For example, WAF includes features that:

-   “sufficiently” impede unauthorized and/or uncompensated use of    electronic information and/or appliances through the use of secure    communication, storage, and transaction management technologies. WAF    supports a model wide, distributed security implementation which    creates a single secure “virtual” transaction processing and    information storage environment. WAF enables distributed WAF    installations to securely store and communicate information and    remotely control the execution processes and the character of use of    electronic information at other WAF installations and in a wide    variety of ways;-   support low-cost, efficient, and effective security architectures    for transaction control, auditing, reporting, and related    communications and information storage. WAF may employ tagging    related security techniques, the time-ageing of encryption keys, the    compartmentalization of both stored control information (including    differentially tagging such stored information to ensure against    substitution and tampering) and distributed content (to, for many    content applications, employ one or more content encryption keys    that are unique to the specific WAF installation and/or user),    private key techniques such as triple DES to encrypt content, public    key techniques such as RSA to protect communications and to provide    the benefits of digital signature and authentication to securely    bind together the nodes of a WAF arrangement, secure processing of    important transaction management executable code, and a combining of    a small amount of highly secure, hardware protected storage space    with a much larger “exposed” mass media storage space storing    secured (normally encrypted and tagged) control and audit    information. WAF employs special purpose hardware distributed    throughout some or all locations of a WAF implementation: a) said    hardware controlling important elements of: content preparation    (such as causing such content to be placed in a WAF content    container and associating content control information with said    content), content and/or electronic appliance usage auditing,    content usage analysis, as well as content usage control; and b)    said hardware having been designed to securely handle processing    load module control activities, wherein said control processing    activities may involve a sequence of required control factors;-   support dynamic user selection of information subsets of a WAF    electronic information product (WAF controlled content). This    contrasts with the constraints of having to use a few high level    individual, pre-defined content provider information increments such    as being required to select a whole information product or product    section in order to acquire or otherwise use a portion of such    product or section. WAF supports metering and usage control over a    variety of increments (including “atomic” increments, and    combinations of different increment types) that are selected ad hoc    by a user and represent a collection of pre-identified one or more    increments (such as one or more blocks of a preidentified nature,    e.g., bytes, images, logically related blocks) that form a generally    arbitrary, but logical to a user, content “deliverable.” WAF control    information (including budgeting, pricing and metering) can be    configured so that it can specifically apply, as appropriate, to ad    hoc selection of different, unanticipated variable user selected    aggregations of information increments and pricing levels can be, at    least in part, based on quantities and/or nature of mixed increment    selections (for example, a certain quantity of certain text could    mean associated images might be discounted by 15%; a greater    quantity of text in the “mixed” increment selection might mean the    images are discounted 20%). Such user selected aggregated    information increments can reflect the actual requirements of a user    for information and is more flexible than being limited to a single,    or a few, high level, (e.g. product, document, database record)    predetermined increments. Such high level increments may include    quantities of information not desired by the user and as a result be    more costly than the subset of information needed by the user if    such a subset was available. In sum, the present invention allows    information contained in electronic information products to be    supplied according to user specification. Tailoring to user    specification allows the present invention to provide the greatest    value to users, which in turn will generate the greatest amount of    electronic commerce activity. The user, for example, would be able    to define an aggregation of content derived from various portions of    an available content product, but which, as a deliverable for use by    the user, is an entirely unique aggregated increment. The user may,    for example, select certain numbers of bytes of information from    various portions of an information product, such as a reference    work, and copy them to disc in unencrypted form and be billed based    on total number of bytes plus a surcharge on the number of    “articles” that provided the bytes. A content provider might    reasonably charge less for such a user defined information increment    since the user does not to require all of the content from all of    the articles that contained desired information. This process of    defining a user desired information increment may involve artificial    intelligence database search tools that contribute to the location    of the most relevant portions of information from an information    product and cause the automatic display to the user of information    describing search criteria hits for user selection or the automatic    extraction and delivery of such portions to the user. WAF further    supports a wide variety of predefined increment types including:-   bytes,-   images,-   content over time for audio or video, or any other increment that    can be identified by content provider data mapping efforts, such as:-   sentences,-   paragraphs,-   articles,-   database records, and-   byte offsets representing increments of logically related    information.

WAF supports as many simultaneous predefined increment types as may bepractical for a given type of content and business model.

securely store at a user's site potentially highly detailed informationreflective of a user's usage of a variety of different content segmenttypes and employing both inexpensive “exposed” host mass storage formaintaining detailed information in the form of encrypted data andmaintaining summary information for security testing in highly securespecial purpose WAF installation nonvolatile memory (if available).

support trusted chain of handling capabilities for pathways ofdistributed electronic information and/or for content usage relatedinformation. Such chains may extend, for example, from a contentcreator, to a distributor, a redistributor, a client user, and then mayprovide a pathway for securely reporting the same and/or differing usageinformation to one or more auditors, such as to one or more independentclearinghouses and then back to the content providers, including contentcreators. The same and/or different pathways employed for certaincontent handling, and related content control information and reportinginformation handling, may also be employed as one or more pathways forelectronic payment handling (payment is characterized in the presentinvention as administrative content) for electronic content and/orappliance usage. These pathways are used for conveyance of all orportions of content, and/or content related control information. Contentcreators and other providers can specify the pathways that, partially orfully, must be used to disseminate commercially distributed propertycontent, content control information, payment administrative content,and/or associated usage reporting information. Control informationspecified by content providers may also specify which specific partiesmust or may (including, for example, a group of eligible parties fromwhich a selection may be made) handle conveyed information. It may alsospecify what transmission means (for example telecommunication carriersor media types) and transmission hubs must or may be used.

support flexible auditing mechanisms, such as employing “bitmap meters,”that achieve a high degree of efficiency of operation and throughput andallow, in a practical manner, the retention and ready recall ofinformation related to previous usage activities and related patterns.This flexibility is adaptable to a wide variety of billing and securitycontrol strategies such as:

-   upgrade pricing (e.g. suite purchases),-   pricing discounts (including quantity discounts),-   billing related time duration variables such as discounting new    purchases based on the timing of past purchases, and-   security budgets based on quantity of different, logically related    units of electronic information used over an interval of time.

Use of bitmap meters (including “regular” and “wide” bitmap meters) torecord usage and/or purchase of information, in conjunction with otherelements of the preferred embodiment of the present invention, uniquelysupports efficient maintenance of usage history for: (a) rental, (b)flat fee licensing or purchase, (c) licensing or purchase discountsbased upon historical usage variables, and (d) reporting to users in amanner enabling users to determine whether a certain item was acquired,or acquired within a certain time period (without requiring the use ofconventional database mechanisms, which are highly inefficient for theseapplications). Bitmap meter methods record activities associated withelectronic appliances, properties, objects, or portions thereof, and/oradministrative activities that are independent of specific properties,objects, etc., performed by a user and/or electronic appliance such thata content and/or appliance provider and/or controller of anadministrative activity can determine whether a certain activity hasoccurred at some point, or during a certain period, in the past (forexample, certain use of a commercial electronic content product and/orappliance). Such determinations can then be used as part of pricingand/or control strategies of a content and/or appliance provider, and/orcontroller of an administrative activity. For example, the contentprovider may choose to charge only once for access to a portion of aproperty, regardless of the number of times that portion of the propertyis accessed by a user.

support “launchable” content, that is content that can be provided by acontent provider to an end-user, who can then copy or pass along thecontent to other end-user parties without requiring the directparticipation of a content provider to register and/or otherwiseinitialize the content for use. This content goes “out of (thetraditional distribution) channel” in the form of a “traveling object.”Traveling objects are containers that securely carry at least somepermissions information and/or methods that are required for their use(such methods need not be carried by traveling objects if the requiredmethods will be available at, or directly available to a destination WAFinstallation). Certain travelling objects may be used at some or all WAFinstallations of a given WAF arrangement since they can make availablethe content control information necessary for content use withoutrequiring the involvement of a commercial WAF value chain participant ordata security administrator (e.g. a control officer or networkadministrator). As long as traveling object control informationrequirements are available at the user WAF installation secure subsystem(such as the presence of a sufficient quantity of financial credit froman authorized credit provider), at least some travelling object contentmay be used by a receiving party without the need to establish aconnection with a remote WAF authority (until, for example, budgets areexhausted or a time content usage reporting interval has occurred).Traveling objects can travel “out-of-channel,” allowing, for example, auser to give a copy of a traveling object whose content is a softwareprogram, a movie or a game, to a neighbor, the neighbor being able touse the traveling object if appropriate credit (e.g. an electronicclearinghouse account from a clearinghouse such as VISA or AT&T) isavailable. Similarly, electronic information that is generally availableon an Internet, or a similar network, repository might be provided inthe form of a traveling object that can be downloaded and subsequentlycopied by the initial downloader and then passed along to other partieswho may pass the object on to additional parties.

provide very flexible and extensible user identification according toindividuals, installations, by groups such as classes, and by functionand hierarchical identification employing a hierarchy of levels ofclient identification (for example, client organization ID, clientdepartment ID, client network ID, client project ID, and client employeeID, or any appropriate subset of the above).

provide a general purpose, secure, component based content control anddistribution system that functions as a foundation transaction operatingsystem environment that employs executable code pieces crafted fortransaction control and auditing. These code pieces can be reused tooptimize efficiency in creation and operation of trusted, distributedtransaction management arrangements. WAF supports providing suchexecutable code in the form of “atomic” load modules and associateddata. Many such load modules are inherently configurable, aggregatable,portable, and extensible and singularly, or in combination (along withassociated data), run as control methods under the WAF transactionoperating environment. WAF can satisfy the requirements of widelydiffering electronic commerce and data security applications by, inpart, employing this general purpose transaction management foundationto securely process WAF transaction related control methods. Controlmethods are created primarily through the use of one or more of saidexecutable, reusable load module code pieces (normally in the form ofexecutable object components) and associated data. The component natureof control methods allows the present invention to efficiently operateas a highly configurable content control system. Under the presentinvention, content control models can be iteratively and asynchronouslyshaped, and otherwise updated to accommodate the needs of WAFparticipants to the extent that such shaping and otherwise updatingconforms to constraints applied by a WAF application, if any (e.g.,whether new component assemblies are accepted and, if so, whatcertification requirements exist for such component assemblies orwhether any or certain participants may shape any or certain controlinformation by selection amongst optional control information(permissions record) control methods. This iterative (or concurrent)multiple participant process occurs as a result of the submission anduse of secure, control information components (executable code such asload modules and/or methods, and/or associated data). These componentsmay be contributed independently by secure communication between eachcontrol information influencing WAF participant's WAF installation andmay require certification for use with a given application, where suchcertification was provided by a certification service manager for theWAF arrangement who ensures secure interoperability and/or reliability(e.g., bug control resulting from interaction) between appliances andsubmitted control methods. The transaction management control functionsof a WAF electronic appliance transaction operating environment interactwith non-secure transaction management operating system functions toproperly direct transaction processes and data related to electronicinformation security, usage control, auditing, and usage reporting. WAFprovides the capability to manages resources related to secure WAFcontent and/or appliance control information execution and data storage.

facilitate creation of application and/or system functionality under WAFand to facilitate integration into electronic appliance environments ofload modules and methods created under the present invention. To achievethis, WAF employs an Application Programmer's Interface (API) and/or atransaction operating system (such as a ROS) programming language withincorporated functions, both of which support the use of capabilitiesand can be used to efficiently and tightly integrate WAF functionalityinto commercial and user applications.

support user interaction through: (a) “Pop-Up” applications which, forexample, provide messages to users and enable users to take specificactions such as approving a transaction, (b) stand-alone WAFapplications that provide administrative environments for useractivities such as: end-user preference specifications for limiting theprice per transaction, unit of time, and/or session, for accessinghistory information concerning previous transactions, for reviewingfinancial information such as budgets, expenditures (e.g. detailedand/or summary) and usage analysis information, and (c) WAF awareapplications which, as a result of the use of a WAF API and/or atransaction management (for example, ROS based) programming languageembeds WAF “awareness” into commercial or internal software (applicationprograms, games, etc.) so that WAF user control information and servicesare seamlessly integrated into such software and can be directlyaccessed by a user since the underlying functionality has beenintegrated into the commercial software's native design. For example, ina WAF aware word processor application, a user may be able to “print” adocument into a WAF content container object, applying specific controlinformation by selecting from amongst a series of different menutemplates for different purposes (for example, a confidential memotemplate for internal organization purposes may restrict the ability to“keep,” that is to make an electronic copy of the memo).

employ “templates” to ease the process of configuring capabilities ofthe present invention as they relate to specific industries orbusinesses. Templates are applications or application add-ons under thepresent invention. Templates support the efficient specification and/ormanipulation of criteria related to specific content types, distributionapproaches, pricing mechanisms, user interactions with content and/oradministrative activities, and/or the like. Given the very large rangeof capabilities and configurations supported by the present invention,reducing the range of configuration opportunities to a manageable subsetparticularly appropriate for a given business model allows the fullconfigurable power of the present invention to be easily employed by“typical” users who would be otherwise burdened with complex programmingand/or configuration design responsibilities template applications canalso help ensure that WAF related processes are secure and optimally bugfree by reducing the risks associated with the contribution ofindependently developed load modules, including unpredictable aspects ofcode interaction between independent modules and applications, as wellas security risks associated with possible presence of viruses in suchmodules. WAF, through the use of templates, reduces typical userconfiguration responsibilities to an appropriately focused set ofactivities including selection of method types (e.g. functionality)through menu choices such as multiple choice, icon selection, and/orprompting for method parameter data (such as identification information,prices, budget limits, dates, periods of time, access rights to specificcontent, etc.) that supply appropriate and/or necessary data for controlinformation purposes. By limiting the typical (non-programming) user toa limited subset of configuration activities whose general configurationenvironment (template) has been preset to reflect general requirementscorresponding to that user, or a content or other business model canvery substantially limit difficulties associated with contentcontainerization (including placing initial control information oncontent), distribution, client administration, electronic agreementimplementation, end-user interaction, and clearinghouse activities,including associated interoperability problems (such as conflictsresulting from security, operating system, and/or certificationincompatibilities). Use of appropriate WAF templates can assure usersthat their activities related to content WAF containerization,contribution of other control information, communications, encryptiontechniques and/or keys, etc. will be in compliance with specificationsfor their distributed WAF arrangement. WAF templates constitute presetconfigurations that can normally be reconfigurable to allow for newand/or modified templates that reflect adaptation into new industries asthey evolve or to reflect the evolution or other change of an existingindustry. For example, the template concept may be used to provideindividual, overall frameworks for organizations and individuals thatcreate, modify, market, distribute, consume, and/or otherwise usemovies, audio recordings and live performances, magazines, telephonybased retail sales, catalogs, computer software, information data bases,multimedia, commercial communications, advertisements, market surveys,infomercials, games, CAD/CAM services for numerically controlledmachines, and the like. As the context surrounding these templateschanges or evolves, template applications provided under the presentinvention may be modified to meet these changes for broad use, or formore focused activities. A given WAF participant may have a plurality oftemplates available for different tasks. A party that places content inits initial WAF container may have a variety of different, configurabletemplates depending on the type of content and/or business model relatedto the content. An end-user may have different configurable templatesthat can be applied to different document types (e-mail, secure internaldocuments, database records, etc.) and/or subsets of users (applyingdiffering general sets of control information to different bodies ofusers, for example, selecting a list of users who may, under certainpreset criteria, use a certain document). Of course, templates may,under certain circumstances have fixed control information and notprovide for user selections or parameter data entry.

support plural, different control models regulating the use and/orauditing of either the same specific copy of electronic informationcontent and/or differently regulating different copies (occurrences) ofthe same electronic information content. Differing models for billing,auditing, and security can be applied to the same piece of electronicinformation content and such differing sets of control information mayemploy, for control purposes, the same, or differing, granularities ofelectronic information control increments. This includes supportingvariable control information for budgeting and auditing usage as appliedto a variety of predefined increments of electronic information,including employing a variety of different budgets and/or meteringincrements for a given electronic information deliverable for: billingunits of measure, credit limit, security budget limit and securitycontent metering increments, and/or market surveying and customerprofiling content metering increments. For example, a CD-ROM disk with adatabase of scientific articles might be in part billed according to aformula based on the number of bytes decrypted, number of articlescontaining said bytes decrypted, while a security budget might limit theuse of said database to no more than 5% of the database per month forusers on the wide area network it is installed on.

provide mechanisms to persistently maintain trusted content usage andreporting control information through both a sufficiently secure chainof handling of content and content control information and throughvarious forms of usage of such content wherein said persistence ofcontrol may survive such use. Persistence of control includes theability to extract information from a WAF container object by creating anew container whose contents are at least in part secured and thatcontains both the extracted content and at least a portion of thecontrol information which control information of the original containerand/or are at least in part produced by control information of theoriginal container for this purpose and/or WAF installation controlinformation stipulates should persist and/or control usage of content inthe newly formed container. Such control information can continue tomanage usage of container content if the container is “embedded” intoanother WAF managed object, such as an object which contains pluralembedded WAF containers, each of which contains content derived(extracted) from a different source.

enables users, other value chain participants (such as clearinghousesand government agencies), and/or user organizations, to specifypreferences or requirements related to their use of electronic contentand/or appliances. Content users, such as end-user customers usingcommercially distributed content (games, information resources, softwareprograms, etc.), can define, if allowed by senior control information,budgets, and/or other control information, to manage their own internaluse of content. Uses include, for example, a user setting a limit on theprice for electronic documents that the user is willing to pay withoutprior express user authorization, and the user establishing thecharacter of metering information he or she is willing to allow to becollected (privacy protection). This includes providing the means forcontent users to protect the privacy of information derived from theiruse of a WAF installation and content and/or appliance usage auditing.In particular, WAF can prevent information related to a participant'susage of electronic content from being provided to other parties withoutthe participant's tacit or explicit agreement.

provide mechanisms that allow control information to “evolve” and bemodified according, at least in part, to independently, securelydelivered further control information. Said control information mayinclude executable code (e.g., load modules) that has been certified asacceptable (e.g., reliable and trusted) for use with a specific WAFapplication, class of applications, and/or a WAF distributedarrangement. This modification (evolution) of control information canoccur upon content control information (load modules and any associateddata) circulating to one or more WAF participants in a pathway ofhandling of control information, or it may occur upon controlinformation being received from a WAF participant. Handlers in a pathwayof handling of content control information, to the extent each isauthorized, can establish, modify, and/or contribute to, permission,auditing, payment, and reporting control information related tocontrolling, analyzing, paying for, and/or reporting usage of,electronic content and/or appliances (for example, as related to usageof WAF controlled property content). Independently delivered (from anindependent source which is independent except in regards tocertification), at least in part secure, control information can beemployed to securely modify content control information when contentcontrol information has flowed from one party to another party in asequence of WAF content control information handling. This modificationemploys, for example, one or more WAF component assemblies beingsecurely processed in a WAF secure subsystem. In an alternateembodiment, control information may be modified by a senior partythrough use of their WAF installation secure sub-system after receivingsubmitted, at least in part secured, control information from a “junior”party, normally in the form of a WAF administrative object. Controlinformation passing along WAF pathways can represent a mixed controlset, in that it may include: control information that persisted througha sequence of control information handlers, other control informationthat was allowed to be modified, and further control informationrepresenting new control information and/or mediating data. Such acontrol set represents an evolution of control information fordisseminated content. In this example the overall content control setfor a WAF content container is “evolving” as it securely (e.g.communicated in encrypted form and using authentication and digitalsignaturing techniques) passes, at least in part, to a new participant'sWAF installation where the proposed control information is securelyreceived and handled. The received control information may be integrated(through use of the receiving parties' WAF installation securesub-system) with in-place control information through a negotiationprocess involving both control information sets. For example, themodification, within the secure sub-system of a content provider's WAFinstallation, of content control information for a certain WAF contentcontainer may have occurred as a result of the incorporation of requiredcontrol information provided by a financial credit provider. Said creditprovider may have employed their WAF installation to prepare andsecurely communicate (directly or indirectly) said required controlinformation to said content provider. Incorporating said requiredcontrol information enables a content provider to allow the creditprovider's credit to be employed by a content end-user to compensate forthe end-user's use of WAF controlled content and/or appliances, so longas said end-user has a credit account with said financial creditprovider and said credit account has sufficient credit available.Similarly, control information requiring the payment of taxes and/or theprovision of revenue information resulting from electronic commerceactivities may be securely received by a content provider. This controlinformation may be received, for example, from a government agency.Content providers might be required by law to incorporate such controlinformation into the control information for commercially distributedcontent and/or services related to appliance usage. Proposed controlinformation is used to an extent allowed by senior control informationand as determined by any negotiation trade-offs that satisfy prioritiesstipulated by each set (the received set and the proposed set). WAF alsoaccommodates different control schemes specifically applying todifferent participants (e.g., individual participants and/or participantclasses (types)) in a network of WAF content handling participants.

support multiple simultaneous control models for the same contentproperty and/or property portion. This allows, for example, forconcurrent business activities which are dependent on electroniccommercial product content distribution, such as acquiring detailedmarket survey information and/or supporting advertising, both of whichcan increase revenue and result in lower content costs to users andgreater value to content providers. Such control information and/oroverall control models may be applied, as determined or allowed bycontrol information, in differing manners to different participants in apathway of content, reporting, payment, and/or related controlinformation handling. WAF supports applying different content controlinformation to the same and/or different content and/or appliance usagerelated activities, and/or to different parties in a content and/orappliance usage model, such that different parties (or classes of WAFusers, for example) are subject to differing control informationmanaging their use of electronic information content. For example,differing control models based on the category of a user as adistributor of a WAF controlled content object or an end-user of suchcontent may result in different budgets being applied. Alternatively,for example, a one distributor may have the right to distribute adifferent array of properties than another distributor (from a commoncontent collection provided, for example, on optical disc). Anindividual, and/or a class or other grouping of end-users, may havedifferent costs (for example, a student, senior citizen, and/or poorcitizen user of content who may be provided with the same or differingdiscounts) than a “typical” content user.

support provider revenue information resulting from customer use ofcontent and/or appliances, and/or provider and/or end-user payment oftaxes, through the transfer of credit and/or electronic currency fromsaid end-user and/or provider to a government agency, might occur“automatically” as a result of such received control information causingthe generation of a WAF content container whose content includescustomer content usage information reflecting secure, trusted revenuesummary information and/or detailed user transaction listings (level ofdetail might depend, for example on type or size oftransaction—information regarding a bank interest payment to a customeror a transfer of a large (e.g. over $10,000) might be, by law,automatically reported to the government). Such summary and/or detailedinformation related to taxable events and/or currency, and/or creditorcurrency transfer, may be passed along a pathway of reporting and/orpayment to the government in a WAF container. Such a container may alsobe used for other WAF related content usage reporting information.

support the flowing of content control information through different“branches” of content control information handling so as to accommodate,under the present invention's preferred embodiment, diverse controlleddistributions of WAF controlled content. This allows different partiesto employ the same initial electronic content with differing (perhapscompetitive) control strategies. In this instance, a party who firstplaced control information on content can make certain controlassumptions and these assumptions would evolve into more specific and/orextensive control assumptions. These control assumptions can evolveduring the branching sequence upon content model participants submittingcontrol information changes, for example, for use in “negotiating” with“in place” content control information. This can result in new ormodified content control information and/or it might involve theselection of certain one or more already “in-place” content usagecontrol methods over in-place alternative methods, as well as thesubmission of relevant control information parameter data. This form ofevolution of different control information sets applied to differentcopies of the same electronic property content and/or appliance resultsfrom WAF control information flowing “down” through different branchesin an overall pathway of handling and control and being modifieddifferently as it diverges down these different pathway branches. Thisability of the present invention to support multiple pathway branchesfor the flow of both WAF content control information and WAF managedcontent enables an electronic commerce marketplace which supportsdiverging, competitive business partnerships, agreements, and evolvingoverall business models which can employ the same content propertiescombined, for example, in differing collections of content representingdiffering at least in part competitive products.

enable a user to securely extract, through the use of the securesubsystem at the user's WAF installation, at least a portion of thecontent included within a WAF content container to produce a new, secureobject (content container), such that the extracted information ismaintained in a continually secure manner through the extractionprocess. Formation of the new WAF container containing such extractedcontent shall result in control information consistent with, orspecified by, the source WAF content container, and/or local WAFinstallation secure subsystem as appropriate, content controlinformation. Relevant control information, such as security andadministrative information, derived, at least in part, from the parent(source) object's control information, will normally be automaticallyinserted into a new WAF content container object containing extractedWAF content. This process typically occurs under the control frameworkof a parent object and/or WAF installation control information executingat the user's WAF installation secure subsystem (with, for example, atleast a portion of this inserted control information being storedsecurely in encrypted form in one or more permissions records). In analternative embodiment, the derived content control information appliedto extracted content may be in part or whole derived from, or employ,content control information stored remotely from the WAF installationthat performed the secure extraction such as at a remote serverlocation. As with the content control information for most WAF managedcontent, features of the present invention allows the content's controlinformation to:

-   (a) “evolve,” for example, the extractor of content may add new    control methods and/or modify control parameter data, such as WAF    application compliant methods, to the extent allowed by the    content's in-place control information. Such new control information    might specify, for example, who may use at least a portion of the    new object, and/or how said at least a portion of said extracted    content may be used (e.g. when at least a portion may be used, or    what portion or quantity of portions may be used):-   (b) allow a user to combine additional content with at least a    portion of said extracted content, such as material authored by the    extractor and/or content (for example, images, video, audio, and/or    text) extracted from one or more other WAF container objects for    placement directly into the new container;-   (c) allow a user to securely edit at least a portion of said content    while maintaining said content in a secure form within said WAF    content container;-   (d) append extracted content to a pre-existing WAF content container    object and attach associated control information—in these cases,    user added information may be secured, e.g., encrypted, in part or    as a whole, and may be subject to usage and/or auditing control    information that differs from the those applied to previously in    place object content;-   (e) preserve WAF control over one or more portions of extracted    content after various forms of usage of said portions, for example,    maintain content in securely stored form while allowing “temporary”    on screen display of content or allowing a software program to be    maintained in secure form but transiently decrypt any encrypted    executing portion of said program (all, or only a portion, of said    program may be encrypted to secure the program).

Generally, the extraction features of the present invention allow usersto aggregate and/or disseminate and/or otherwise use protectedelectronic content information extracted from content container sourceswhile maintaining secure WAF capabilities thus preserving the rights ofproviders in said content information after various content usageprocesses.

support the aggregation of portions of WAF controlled content, suchportions being subject to differing WAF content container controlinformation, wherein various of said portions may have been provided byindependent, different content providers from one or more differentlocations remote to the user performing the aggregation. Suchaggregation, in the preferred embodiment of the present invention, mayinvolve preserving at least a portion of the control information (e.g.,executable code such as load modules) for each of various of saidportions by, for example, embedding some or all of such portionsindividually as WAF content container objects within an overall WAFcontent container and/or embedding some or all of such portions directlyinto a WAF content container. In the latter case, content controlinformation of said content container may apply differing controlinformation sets to various of such portions based upon said portionsoriginal control information requirements before aggregation. Each ofsuch embedded WAF content containers may have its own controlinformation in the form of one or more permissions records.Alternatively, a negotiation between control information associated withvarious aggregated portions of electronic content, may produce a controlinformation set that would govern some or all of the aggregated contentportions. The WAF content control information produced by thenegotiation may be uniform (such as having the same load modules and/orcomponent assemblies, and/or it may apply differing such content controlinformation to two or more portions that constitute an aggregation ofWAF controlled content such as differing metering, budgeting, billingand/or payment models. For example, content usage payment may beautomatically made, either through a clearinghouse, or directly, todifferent content providers for different potions.

enable flexible metering of, or other collection of information relatedto, use of electronic content and/or electronic appliances. A feature ofthe present invention enables such flexibility of metering controlmechanisms to accommodate a simultaneous, broad array of (a) differentparameters related to electronic information content use; (b) differentincrement units (bytes, documents, properties, paragraphs, images, etc.)and/or other organizations of such electronic content; and/or (c)different categories of user and/or WAF installation types, such asclient organizations, departments, projects, networks, and/or individualusers, etc. This feature of the present invention can be employed forcontent security, usage analysis (for example, market surveying), and/orcompensation based upon the use and/or exposure to WAF managed content.Such metering is a flexible basis for ensuring payment for contentroyalties, licensing, purchasing, and/or advertising. A feature of thepresent invention provides for payment means supporting flexibleelectronic currency and credit mechanisms, including the ability tosecurely maintain audit trails reflecting information related to use ofsuch currency or credit. WAF supports multiple differing hierarchies ofclient organization control information wherein an organization clientadministrator distributes control information specifying the usagerights of departments, users, and/or projects. Likewise, a department(division) network manager can function as a distributor (budgets,access rights, etc.) for department networks, projects, and/or users,etc.

provide scalable, integratable, standardized control means for use onelectronic appliances ranging from inexpensive consumer (for example,television set-top appliances) and professional devices (and hand-heldPDAs) to servers, mainframes, communication switches, etc. The scalabletransaction management/auditing technology of the present invention willresult in more efficient and reliable interoperability amongst devicesfunctioning in electronic commerce and/or data security environments. Asstandardized physical containers have become essential to the shippingof physical goods around the world, allowing these physical containersto universally “fit” unloading equipment, efficiently use truck andtrain space, and accommodate known arrays of objects (for example,boxes) in an efficient manner, so WAF electronic content containers may,as provided by the present invention, be able to efficiently moveelectronic information content (such as commercially publishedproperties, electronic currency and credit, and content auditinformation), and associated content control information, around theworld. Interoperability is fundamental to efficient electronic commerce.The design of the WAF foundation, WAF load modules, and WAF containers,are important features that enable the WAF node operating environment tobe compatible with a very broad range of electronic appliances. Theability, for example, for control methods based on load modules toexecute in very “small” and inexpensive secure sub-system environments,such as environments with very little read/write memory, while alsobeing able to execute in large memory sub-systems that may be used inmore expensive electronic appliances, supports consistency across manymachines. This consistent WAF operating environment, including itscontrol structures and container architecture, enables the use ofstandardized WAF content containers across a broad range of device typesand host operating environments. Since WAF capabilities can beseamlessly integrated as extensions, additions, and/or modifications tofundamental capabilities of electronic appliances and host operatingsystems, WAF containers, content control information, and the WAFfoundation will be able to work with many device types and these devicetypes will be able to consistently and efficiently interpret and enforceWAF control information. Through this integration users can also benefitfrom a transparent interaction with many of the capabilities of WAF. WAFintegration with software operating on a host electronic appliancesupports a variety of capabilities that would be unavailable or lesssecure without such integration. Through integration with one or moredevice applications and/or device operating environments, manycapabilities of the present invention can be presented as inherentcapabilities of a given electronic appliance, operating system, orappliance application. For example, features of the present inventioninclude: (a) WAF system software to in part extend and/or modify hostoperating systems such that they possesses WAF capabilities, such asenabling secure transaction processing and electronic informationstorage; (b) one or more application programs that in part representtools associated with WAF operation; and/or (c) code to be integratedinto application programs, wherein such code incorporates referencesinto WAF system software to integrate WAF capabilities and makes suchapplications WAF aware (for example, word processors, database retrievalapplications, spreadsheets, multimedia presentation authoring tools,film editing software, music editing software such as MIDI applicationsand the like, robotics control systems such as those associated withCAD/CAM environments and NCM software and the like, electronic mailsystems, teleconferencing software, and other data authoring, creating,handling, and/or usage applications including combinations of theabove). These one or more features (which may also be implemented infirmware or hardware) may be employed in conjunction with a WAF nodesecure hardware processing capability, such as a microcontroller(s),microprocessor(s), other CPU(s) or other digital processing logic.

employ audit reconciliation and usage pattern evaluation processes thatassess, through certain, normally network based, transaction processingreconciliation and threshold checking activities, whether certainviolations of security of a WAF arrangement have occurred. Theseprocesses are performed remote to WAF controlled content end-user WAFlocations by assessing, for example, purchases, and/or requests, forelectronic properties by a given WAF installation. Applications for suchreconciliation activities include assessing whether the quantity ofremotely delivered WAF controlled content corresponds to the amount offinancial credit and/or electronic currency employed for the use of suchcontent. A trusted organization can acquire information from contentproviders concerning the cost for content provided to a given WAFinstallation and/or user and compare this cost for content with thecredit and/or electronic currency disbursements for that installationand/or user. Inconsistencies in the amount of content delivered versusthe amount of disbursement can prove, and/or indicate, depending on thecircumstances, whether the local WAF installation has been, at least tosome degree, compromised (for example, certain important system securityfunctions, such as breaking encryption for at least some portion of thesecure subsystem and/or WA F controlled content by uncovering one ormore keys). Determining whether irregular patterns (e.g. unusually highdemand) of content usage, or requests for delivery of certain kinds ofWAF controlled information during a certain time period by one or moreWAF installations and/or users (including, for example, groups ofrelated users whose aggregate pattern of usage is suspicious) may alsobe useful in determining whether security at such one or moreinstallations, and/or by such one or more users, has been compromised,particularly when used in combination with an assessment of electroniccredit and/or currency provided to one or more WAF users and/orinstallations, by some or all of their credit and/or currency suppliers,compared with the disbursements made by such users and/or installations.

support security techniques that materially increase the time requiredto “break” a system's integrity. This includes using a collection oftechniques that minimizes the damage resulting from comprising someaspect of the security features of the present inventions.

provide a family of authoring, administrative, reporting, payment, andbilling tool user applications that comprise components of the presentinvention's trusted/secure, universe wide, distributed transactioncontrol and administration system. These components support WAF related:object creation (including placing control information on content),secure object distribution and management (including distributioncontrol information, financial related, and other usage analysis),client internal WAF activities administration and control, securitymanagement, user interfaces, payment disbursement, and clearinghouserelated functions. These components are designed to support highlysecure, uniform, consistent, and standardized: electronic commerceand/or data security pathway(s) of handling, reporting, and/or payment;content control and administration; and human factors (e.g. userinterfaces).

support the operation of a plurality of clearinghouses, including, forexample, both financial and user clearinghouse activities, such as thoseperformed by a client administrator in a large organization to assist inthe organization's use of a WAF arrangement, including usage informationanalysis, and control of WAF activities by individuals and groups ofemployees such as specifying budgets and the character of usage rightsavailable under WAF for certain groups of and/or individual, clientpersonnel, subject to control information series to control informationsubmitted by the client administrator. At a clearinghouse, one or moreWAF installations may operate together with a trusted distributeddatabase environment (which may include concurrent database processingmeans). A financial clearinghouse normally receives at its locationsecurely delivered content usage information, and user requests (such asrequests for further credit, electronic currency, and/or higher creditlimit). Reporting of usage information and user requests can be used forsupporting electronic currency, billing, payment and credit relatedactivities, and/or for user profile analysis and/or broader marketsurvey analysis and marketing (consolidated) list generation or otherinformation derived, at least in part, from said usage information, thisinformation can be provided to content providers or other parties,through secure, authenticated encrypted communication to the WAFinstallation secure subsystems. Clearinghouse processing means wouldnormally be connected to specialized I/O means, which may include highspeed telecommunication switching means that may be used for securecommunications between a clearinghouse and other WAF pathwayparticipants.

securely support electronic currency and credit usage control, storage,and communication at, and between, WAF installations. WAF furthersupports automated passing of electronic currency and/or creditinformation, including payment tokens (such as in the form of electroniccurrency or credit) or other payment information, through a pathway ofpayment, which said pathway may or may not be the same as a pathway forcontent usage information reporting. Such payment may be placed into aWAF container created automatically by a WAF installation in response tocontrol information stipulating the “withdrawal” of credit or electroniccurrency from an electronic credit or currency account based upon anamount owed resulting from usage of WAF controlled electronic contentand/or appliances. Payment credit or currency may then be automaticallycommunicated in protected (at least in part encrypted) form throughtelecommunication of a WAF container to an appropriate party such as aclearinghouse, provider of original property content or appliance, or anagent for such provider (other than a clearinghouse). Paymentinformation may be packaged in said WAF content container with, orwithout, related content usage information, such as meteringinformation. An aspect of the present invention further enables certaininformation regarding currency use to be specified as unavailable tocertain, some, or all WAF parties (“conditionally” to fully anonymouscurrency) and/or further can regulate certain content information, suchas currency and/or credit use related information (and/or otherelectronic information usage data) to be available only under certainstrict circumstances, such as a court order (which may itself requireauthorization through the use of a court controlled WAF installationthat may be required to securely access “conditionally” anonymousinformation). Currency and credit information, under the preferredembodiment of the present invention, is treated as administrativecontent;

support fingerprinting (also known as watermarking) for embedding incontent such that when content protected under the present invention isreleased in clear form from a WAF object (displayed, printed,communicated, extracted, and/or saved), information representing theidentification of the user and/or WAF installation responsible fortransforming the content into clear form is embedded into the releasedcontent. Fingerprinting is useful in providing an ability to identifywho extracted information in clear form a WAF container, or who made acopy of a WAF object or a portion of its contents. Since the identity ofthe user and/or other identifying information may be embedded in anobscure or generally concealed manner, in WAF container content and/orcontrol information, potential copyright violators may be deterred fromunauthorized extraction or copying. Fingerprinting normally is embeddedinto unencrypted electronic content or control information, though itcan be embedded into encrypted content and later placed in unencryptedcontent in a secure WAF installation sub-system as the encrypted contentcarrying the fingerprinting information is decrypted. Electronicinformation, such as the content of a WAF container, may befingerprinted as it leaves a network (such as Internet) location boundfor a receiving party. Such repository information may be maintained inunencrypted form prior to communication and be encrypted as it leavesthe repository. Fingerprinting would preferably take place as thecontent leaves the repository, but before the encryption step. Encryptedrepository content can be decrypted, for example in a secure WAFsub-system, fingerprint information can be inserted, and then thecontent can be re-encrypted for transmission. Embedding identificationinformation of the intended recipient user and/or WAF installation intocontent as it leaves, for example, an Internet repository, would provideimportant information that would identify or assist in identifying anyparty that managed to compromise the security of a WAF installation orthe delivered content. If a party produces an authorized clear form copyof WAF controlled content, including making unauthorized copies of anauthorized clear form copy, fingerprint information would point back tothat individual and/or his or her WAF installation. Such hiddeninformation will act as a strong disincentive that should dissuade asubstantial portion of potential content “pirates” from stealing otherparties electronic information. Fingerprint information identifying areceiving party and/or WAF installation can be embedded into a WAFobject before, or during, decryption, replication, or communication ofWAF content objects to receivers. Fingerprinting electronic contentbefore it is encrypted for transfer to a customer or other user providesinformation that can be very useful for identifying who received certaincontent which may have then been distributed or made available inunencrypted form. This information would be useful in tracking who mayhave “broken” the security of a WAF installation and was illegallymaking certain electronic content available to others. Fingerprintingmay provide additional, available information such as time and/or dateof the release (for example extraction) of said content information.Locations for inserting fingerprints may be specified by WAFinstallation and/or content container control information. Thisinformation may specify that certain areas and/or precise locationswithin properties should be used for fingerprinting, such as one or morecertain fields of information or information types. Fingerprintinginformation may be incorporated into a property by modifying in anormally undetectable way color frequency and/or the brightness ofcertain image pixels, by slightly modifying certain audio signals as tofrequency, by modifying font character formation, etc. Fingerprintinformation, itself, should be encrypted so as to make it particularlydifficult for tampered fingerprints to be interpreted as valid.Variations in fingerprint locations for different copies of the sameproperty; “false” fingerprint information; and multiple copies offingerprint information within a specific property or other contentwhich copies employ different fingerprinting techniques such asinformation distribution patterns, frequency and/or brightnessmanipulation, and encryption related techniques, are features of thepresent invention for increasing the difficulty of an unauthorizedindividual identifying fingerprint locations and erasing and/ormodifying fingerprint information.

provide smart object agents that can carry requests, data, and/ormethods, including budgets, authorizations, credit or currency, andcontent. For example, smart objects may travel to and/or from remoteinformation resource locations and fulfill requests for electronicinformation content. Smart objects can, for example, be transmitted to aremote location to perform a specified database search on behalf of auser or otherwise “intelligently” search remote one or more repositoriesof information for user desired information. After identifying desiredinformation at one or more remote locations, by for example, performingone or more database searches, a smart object may return viacommunication to the user in the form of a secure “return object”containing retrieved information. A user may be charged for the remoteretrieving of information, the returning of information to the user'sWAF installation, and/or the use of such information. In the lattercase, a user may be charged only for the information in the returnobject that the user actually uses. Smart objects may have the means torequest use of one or more services and/or resources. Services includelocating other services and/or resources such as information resources,language or format translation, processing, credit (or additionalcredit) authorization, etc. Resources include reference databases,networks, high powered or specialized computing resources (the smartobject may carry information to another computer to be efficientlyprocessed and then return the information to the sending WAFinstallation), remote object repositories, etc. Smart objects can makeefficient use of remote resources (e.g. centralized databases, supercomputers, etc.) while providing a secure means for charging users basedon information and/or resources actually used.

support both “translations” of WAF electronic agreements elements intomodem language printed agreement elements (such as English languageagreements) and translations of electronic rights protection/transactionmanagement modem language agreement elements to electronic WAF agreementelements. This feature requires maintaining a library of textuallanguage that corresponds to WAF load modules and/or methods and/orcomponent assemblies. As WAF methods are proposed and/or employed forWAF agreements, a listing of textual terms and conditions can beproduced by a WAF user application which, in a preferred embodiment,provides phrases, sentences and/or paragraphs that have been stored andcorrespond to said methods and/or assemblies. This feature preferablyemploys artificial intelligence capabilities to analyze andautomatically determine, and/or assist one or more users to determine,the proper order and relationship between the library elementscorresponding to the chosen methods and/or assemblies so as to composesome or all portions of a legal or descriptive document. One or moreusers, and/or preferably an attorney (if the document a legal, bindingagreement), would review the generated document material upon completionand employ such additional textual information and/or editing asnecessary to describe non electronic transaction elements of theagreement and make any other improvements that may be necessary. Thesefeatures further support employing modem language tools that allow oneor more users to make selections from choices and provide answers toquestions and to produce a WAF electronic agreement from such a process.This process can be interactive and the WAF agreement formulationprocess may employ artificial intelligence expert system technology thatlearns from responses and, where appropriate and based at least in parton said responses, provides further choices and/or questions which“evolves” the desired WAF electronic agreement.

support the use of multiple WAF secure subsystems in a single WAFinstallation. Various security and/or performance advantages may berealized by employing a distributed WAF design within a single WAFinstallation. For example, designing a hardware based WAF securesubsystem into an electronic appliance WAF display device, and designingsaid subsystem's integration with said display device so that it is asclose as possible to the point of display, will increase the securityfor video materials by making it materially more difficult to “steal”decrypted video information as it moves from outside to inside the videosystem. Ideally, for example, a WAF secure hardware module would be inthe same physical package as the actual display monitor, such as withinthe packaging of a video monitor or other display device, and suchdevice would be designed, to the extent commercially practical, to be astamper resistant as reasonable. As another example, embedding a WAFhardware module into an I/O peripheral may have certain advantages fromthe standpoint of overall system throughput. If multiple WAF instancesare employed within the same WAF installation, these instances willideally share resources to the extent practical, such as WAF instancesstoring certain control information and content and/or appliance usageinformation on the same mass storage device and in the same WAFmanagement database.

requiring reporting and payment compliance by employing exhaustion ofbudgets and time ageing of keys. For example, a WAF commercialarrangement and associated content control information may involve acontent provider's content and the use of clearinghouse credit forpayment for end-user usage of said content. Control informationregarding said arrangement may be delivered to a user's (of saidcontent) WAF installation and/or said financial clearinghouse's WAFinstallation. Said control information might require said clearinghouseto prepare and telecommunicate to said content provider both contentusage based information in a certain form, and content usage payment inthe form of electronic credit (such credit might be “owned” by theprovider after receipt and used in lieu of the availability or adequacyof electronic currency) and/or electronic currency. This delivery ofinformation and payment may employ trusted WAF installation securesubsystems to securely, and in some embodiments, automatically, providein the manner specified by said control information, said usageinformation and payment content. Features of the present invention helpensure that a requirement that a clearinghouse report such usageinformation and payment content will be observed. For example, if oneparticipant to a WAF electronic agreement fails to observe suchinformation reporting and/or paying obligation, another participant canstop the delinquent party from successfully participating in WAFactivities related to such agreement. For example, if required usageinformation and payment was not reported as specified by content controlinformation, the “injured” party can fail to provide, through failing tosecurely communicate from his WAF installation secure subsystem, one ormore pieces of secure information necessary for the continuance of oneor more critical processes. For example, failure to report informationand/or payment from a clearinghouse to a content provider (as well asany security failures or other disturbing irregularities) can result inthe content provider not providing key and/or budget refresh informationto the clearinghouse, which information can be necessary to authorizeuse of the clearinghouse's credit for usage of the provider's contentand which the clearinghouse would communicate to end-user's during acontent usage reporting communication between the clearinghouse andend-user. As another example, a distributor that failed to make paymentsand/or report usage information to a content provider might find thattheir budget for creating permissions records to distribute the contentprovider's content to users, and/or a security budget limiting one ormore other aspect of their use of the provider's content, are not beingrefreshed by the content provider, once exhausted or timed-out (forexample, at a predetermined date). In these and other cases, theoffended party might decide not to refresh time ageing keys that had“aged out.” Such a use of time aged keys has a similar impact as failingto refresh budgets or time-aged authorizations.

support smart card implementations of the present invention in the formof portable electronic appliances, including cards that can be employedas secure credit, banking, and/or money cards. A feature of the presentinvention is the use of portable WAFs as transaction cards at retail andother establishments, wherein such cards can “dock” with anestablishment terminal that has a WAF secure sub-system and/or an onlineconnection to a WAF secure and/or otherwise secure and compatiblesubsystem, such as a “trusted” financial clearinghouse (e.g., VISA,Mastercard). The WAF card and the terminal (and/or online connection)can securely exchange information related to a transaction, with creditand/or electronic currency being transferred to a merchant and/orclearinghouse and transaction information flowing back to the card. Sucha card can be used for transaction activities of all sorts. A dockingstation, such as a PCMCIA connector on an electronic appliance, such asa personal computer, can receive a consumer's WAF card at home. Such astation/card combination can be used for on-line transactions in thesame manner as a WAF installation that is permanently installed in suchan electronic appliance. The card can be used as an “electronic wallet”and contain electronic currency as well as credit provided by aclearinghouse. The card can act as a convergence point for financialactivities of a consumer regarding many, if not all, merchant, banking,and on-line financial transactions, including supporting home bankingactivities. A consumer can receive his paycheck and/or investmentearnings and/or “authentic” WAF content container secured detailedinformation on such receipts, through on-line connections. A user cansend digital currency to another party with a WAF arrangement, includinggiving away such currency. A WAF card can retain details of transactionsin a highly secure and database organized fashion so that financiallyrelated information is both consolidated and very easily retrievedand/or analyzed. Because of the WAF security, including use of effectiveencryption, authentication, digital signaturing, and secure databasestructures, the records contained within a WAF card arrangement may beaccepted as valid transaction records for government and/or corporaterecordkeeping requirements. In some embodiments of the present inventiona WAF card may employ docking station and/or electronic appliancestorage means and/or share other WAF arrangement means local to saidappliance and/or available across a network, to augment the informationstorage capacity of the WAF card, by for example, storing dated, and/orarchived, backup information. Taxes relating to some or all of anindividual's financial activities may be automatically computed based on“authentic” information securely stored and available to said WAF card.Said information may be stored in said card, in said docking station, inan associated electronic appliance, and/or other device operativelyattached thereto, and/or remotely, such as at a remote server site. Acard's data, e.g. transaction history, can be backed up to anindividual's personal computer or other electronic appliance and such anappliance may have an integrated WAF installation of its own. A currenttransaction, recent transactions (for redundancy), or all or otherselected card data may be backed up to a remote backup repository, sucha WAF compatible repository at a financial clearinghouse, during each orperiodic docking for a financial transaction and/or informationcommunication such as a user/merchant transaction. Backing up at leastthe current transaction during a connection with another party's WAFinstallation (for example a WAF installation that is also on a financialor general purpose electronic network), by posting transactioninformation to a remote clearinghouse and/or bank, can ensure thatsufficient backup is conducted to enable complete reconstruction of WAFcard internal information in the event of a card failure or loss.

support certification processes that ensure authorized interoperabilitybetween various WAF installations so as to prevent WAF arrangementsand/or installations that unacceptably deviate in specificationprotocols from other WAF arrangements and/or installations frominteroperating in a manner that may introduce security (integrity and/orconfidentiality of WAF secured information), process control, and/orsoftware compatibility problems. Certification validates the identity ofWAF installations and/or their components, as well as WAF users.Certification data can also serve as information that contributes todetermining the decommissioning or other change related to WAF sites.

support the separation of fundamental transaction control processesthrough the use of event (triggered) based method control mechanisms.These event methods trigger one or more other WAF methods (which areavailable to a secure WAF sub-system) and are used to carry out WAFmanaged transaction related processing. These triggered methods includeindependently (separably) and securely processable component billingmanagement methods, budgeting management methods, metering managementmethods, and related auditing management processes. As a result of thisfeature of the present invention, independent triggering of metering,auditing, billing, and budgeting methods, the present invention is ableto efficiently, concurrently support multiple financial currencies (e.g.dollars, marks, yen) and content related budgets, and/or billingincrements as well as very flexible content distribution models.

support, complete, modular separation of the control structures relatedto (1) content event triggering, (2) auditing, (3) budgeting (includingspecifying no right of use or unlimited right of use), (4) billing, and(5) user identity (WAF installation, client name, department, network,and/or user, etc.). The independence of these WAF control structuresprovides a flexible system which allows plural relationships between twoor more of these structures, for example, the ability to associate afinancial budget with different event trigger structures (that are putin place to enable controlling content based on its logical portions).Without such separation between these basic WAF capabilities, it wouldbe more difficult to efficiently maintain separate metering, budgeting,identification, and/or billing activities which involve the same,differing (including overlapping), or entirely different, portions ofcontent for metering, billing, budgeting, and user identification, forexample, paying fees associated with usage of content, performing homebanking, managing advertising services, etc. WAF modular separation ofthese basic capabilities supports the programming of plural, “arbitrary”relationships between one or differing content portions (and/or portionunits) and budgeting, auditing, and/or billing control information. Forexample, under WAF, a budget limit of $200 dollars or 300 German Marks amonth may be enforced for decryption of a certain database and 2 U.S.Dollars or 3 German Marks may be charged for each record of saiddatabase decrypted (depending on user selected currency). Such usage canbe metered while an additional audit for user profile purposes can beprepared recording the identity of each filed displayed. Additionally,further metering can be conducted regarding the number of said databasebytes that have been decrypted, and a related security budget mayprevent the decrypting of more than 5% of the total bytes of saiddatabase per year. The user may also, under WAF (if allowed by seniorcontrol information), collect audit information reflecting usage ofdatabase fields by different individuals and client organizationdepartments and ensure that differing rights of access and differingbudgets limiting database usage can be applied to these clientindividuals and groups. Enabling content providers and users topractically employ such diverse sets of user identification, metering,budgeting, and billing control information results, in part, from theuse of such independent control capabilities. As a result. WAF cansupport great configurability in creation of plural control modelsapplied to the same electronic property and the same and/or pluralcontrol models applied to differing or entirely different content models(for example, home banking versus electronic shopping).

Secure Processing Units

An important part of WAF provided by the present invention is the coresecure transaction control arrangement, herein called an SPU (or SPUs),that typically must be present in each user's computer, other electronicappliance, or network. SPUs provide a trusted environment for generatingdecryption keys, encrypting and decrypting information, managing thesecure communication of keys and other information between electronicappliances (i.e. between WAF installations and/or between plural WAFinstances within a single WAF installation), securely accumulating andmanaging audit trail, reporting, and budget information in secure and/ornon-secure non-volatile memory, maintaining a secure database of controlinformation management instructions, and providing a secure environmentfor performing certain other control and administrative functions.

A hardware SPU (rather than a software emulation) within a WAF node isnecessary if a highly trusted environment for performing certain WAFactivities is required. Such a trusted environment may be createdthrough the use of certain control software, one or more tamperresistant hardware modules such as a semiconductor or semiconductorchipset (including, for example, a tamper resistant hardware electronicappliance peripheral device), for use within, and/or operativelyconnected to, an electronic appliance. With the present invention, thetrustedness of a hardware SPU can be enhanced by enclosing some or allof its hardware elements within tamper resistant packaging and/or byemploying other tamper resisting techniques (e.g. microfusing and/orthin wire detection techniques). A trusted environment of the presentinvention implemented, in part, through the use of tamper resistantsemiconductor design, contains control logic, such as a microprocessor,that securely executes WAF processes.

A WAF node's hardware SPU is a core component of a WAF secure subsystemand may employ some or all of an electronic appliance's primary controllogic, such as a microcontroller, microcomputer or other CPUarrangement. This primary control logic may be otherwise employed fornon WAF purposes such as the control of some or all of an electronicappliance's non-WAF functions. When operating in a hardware SPU mode,said primary control logic must be sufficiently secure so as to protectand conceal important WAF processes. For example, a hardware SPU mayemploy a host electronic appliance microcomputer operating in protectedmode while performing WAF related activities, thus allowing portions ofWAF processes to execute with a certain degree of security. Thisalternate embodiment is in contrast to the preferred embodiment whereina trusted environment is created using a combination of one or moretamper resistant semiconductors that are not part of said primarycontrol logic. In either embodiment, certain control information(software and parameter data) must be securely maintained within theSPU, and further control information can be stored externally andsecurely (e.g. in encrypted and tagged form) and loaded into saidhardware SPU when needed. In many cases, and in particular withmicrocomputers, the preferred embodiment approach of employing specialpurpose secure hardware for executing said WAF processes, rather thanusing said primary control logic, may be more secure and efficient. Thelevel of security and tamper resistance required for trusted SPUhardware processes depends on the commercial requirements of particularmarkets or market niches, and may vary widely.

Delivery Framework

The Delivery Vehicle Framework presents a way to organize technologyarchitecture information. When presenting this type of content toclients, one will need to tailor the information one presents based onthe client's background and the terminology they are familiar with. Someof the features of the Delivery Framework include:

-   Promotes focus toward business solutions and away from technology    issues.-   Assists linkage of architecture planning deliverables to delivering.-   Create an enterprise-wide view of the business capabilities enabled    by technologies.-   Provide new architecture frameworks needed today to meet specific    needs.-   Provide guidance to define what architecture best meets those needs.-   Provide development architecture frameworks and best practices to    build these architectures.

During a high-level architecture design, one can identify architectureservices to be addressed, by providing a logical level discussion toassess types of base services and products needed for a specificsituation.

When Delivery Vehicles are implemented, they reduce time to implementbusiness solutions by providing “Starter Kits” architectures.

When Delivery Vehicles are implemented, they leverages technology acrossthe business by:

-   -   reducing operations and maintenance costs by limiting the number        of different    -   technologies and skills required to support these technologies.    -   reducing technology costs for execution & development.        Technology Generation Selection        Introduction

This section should assist an architect in understanding thecharacteristics of, and the implications from selecting, a specifictechnology generation. The strengths and weaknesses of each technologygeneration should be understood when planning and designing a system.When identifying the core technologies to be used in an architecture, aview of the client's existing IT architecture 8600, guiding principles8602 and business imperatives 8604 should be taken into consideration,as depicted in FIG. 86.

It is important to realize that a distinct, static division does notexist between the different technology generations. It is possible thatan architecture will consist of components from more than onegeneration.

The goal should be to understand the pros and cons of the differenttechnology options available for each component and to select the mostappropriate one based on the client's requirements.

It is becoming more important to leverage existing systems and integratethem with new applications. A typical scenario can involve mainframelegacy systems acting as servers in a client server architecture,application servers being accessed from both traditional Gill clientsbuilt in Powerbuilder and Visual Basic and from Web-based front endsaccessing the application servers via a Web-server.

General Considerations

From a technology point of view a new custom-made application shouldgenerally use the most recent Architecture Generation to assure that theapplication will live longer by better being able to adapt to futurechanges.

This implies that all new applications should ideally be based on aNetcentric Architecture, rather than on a traditional client/server or ahost-based architecture.

However choosing a generation is not just a technical decision. Oftenkey technology architecture decisions are made as a result of factorswhich are completely non-technical in nature, such as financial factors,internal and client politics, and implementation/operationalconsiderations.

When deciding whether to employ a Netcentric solution, i.e.incorporating Web-based user interfaces and Internet application styles,one must keep in mind that these technologies are not a panacea andshould be used only when there is solid business reason. They requirenew investments in skills, tools, development and operations processes.Due to the relative immaturity of tools and products, they alsorepresent additional risks both in technical terms, such as performanceand reliability, and in strategic terms, such as vendor and productquality and stability.

Regardless, today each project should always consider the prospect ofutilizing Netcentric technologies. It is important to evaluate whetherthe application can benefit from a Netcentric style implementationimmediately or in the future.

Even if a traditional client/server approach (e.g. using Visual Basic orPowerBuilder) is decided upon, the use of Netcentric concepts to producesignificant reductions in software packaging and distribution costsshould be considered. Such concepts include three- or multi-tierarchitectures with more business logic residing on server, flexiblesecurity architecture, and user interface concepts that can be ported toa Web Browser at a later stage.

A Netcentric architecture will usually still support development ofclient/server applications. The opposite is not often true sincetraditional client/server systems usually keep a substantial portion ofthe business logic on a fat client, while

Netcentric architectures still favor keeping most business logic at theserver side. Also Netcentric architectures tend to be more looselycoupled than (the still dominant two-tier) client/server systems.

The following sections identify the main characteristics associated witha Netcentric, Client Server or Host based technology generation. Thislist should in no way be considered complete and exhaustive but isincluded as a starting point from which the identification process maybegin.

Network Centric Architecture Generation

If most of the statements in FIG. 87 are true, one should consider anapplication based upon the Netcentric technology generation.

The following details the importance of each of the statements in FIG.87 and should assist in identifying the appropriate answer for specificclient engagement.

Existing Architecture And Infrastructure 8700

-   -   E1. Other Netcentric applications been developed and placed in        production.    -   The user community is often less resistant to accept the use of        new technology to address changing business drivers if they are        not completely unfamiliar with the characteristics of the        technology. If an application based on a Netcentric architecture        has already been successfully piloted or deployed, acceptance of        additional systems will be eased.    -   E2. The client has significant technology skills within its IT        department.    -   This is especially important if the client plans on developing        or operating the application themselves. A significant        investment in training and changes to internal organizations may        be necessary for successful deployment of this type of system.        The client must have a culture that supports change. Some        organizations are very conservative and strong, making it        difficult to deliver a successful project using new technology.    -   E3. The client has multiple hardware/operating system        configurations for their client machines.    -   In traditional client/server environments, distributing an        application internally or externally for an enterprise requires        that the application be ported, recompiled and tested for all        specific workstation operating systems. Use of a Universal        Client or web-browser may eliminate many of these problems by        providing a consistent and familiar user interface on many        different operating systems and hardware platforms.    -   E4. The application will run on a device other than a PC.    -   The momentum of the Internet is putting a lot of pressure on        vendors of various devices to be web-enabled. Having the        Internet infrastructure in place makes it more feasible for        vendors to create new physical devices from which electronic        information can be accessed. For example, Web televisions are        gaining momentum. Now users can access the Internet from a        television set. Network Computers, thin-client devices that        download and run applications from a centrally maintained server        are generating a lot of interest. Also, users want to have        access to the same information from multiple physical devices.        For example, a user might want to have access to his/her e-mail        from a cellular phone, from a Web TV or their portable PC.    -   E5. The current legacy systems can scale to serve a potentially        large new audience.    -   Expanding the user community of a legacy host or client/server        system by including an audience which is external to the company        can result in dramatic increases in system usage. The additional        demand and increased usage placed on existing legacy systems is        often difficult to estimate or predict. Analysis must be        conducted to ensure existing legacy systems and infrastructure        can absorb this increase.        Business Imperatives 8702    -   B1. The client needs to reach a new external audience with this        application.    -   This is probably the main reason for selecting a Netcentric        architecture. Through appropriate use of a Netcentric        architecture it is often possible to gain exposure to new        customers and markets. The client can often achieve significant        competitive advantage by providing new services and products to        its customers. Also this new channel makes it technically        possible to develop a new generation of “market-of-one”        products, where each customer can repeatedly and easily        customize a product according to own preferences.    -   B2. The client needs to reach a large or diverse internal        audience with this application.    -   Configuration management of traditional client/server        applications, which tend to be physically distributed across        both the client and server, is a major issue for many        corporations. The software distribution of such applications        which are packaged as one large or a combination of a few large        executables makes minor updates difficult for even a small scale        user population. Every time an update is made, a process must be        initiated to distribute new code to all client machines. The        browser-centric application style offers an alternative to this        traditional problem of distributing functionality to both        internal and external users.        IT Guiding Principles 8704    -   G1. The client is an early adopter of new technology.    -   Implementation of a Netcentric architecture can help the client        realize a number of business benefits. However, the introduction        of new technology into an organization does have inherent risks        and can result in a significant amount of change. The client        should have a culture which can embrace these necessary changes.    -   G2. Applications should be developed to handle non-dedicated or        occasional users.    -   Non-expert users need a simple to use and familiar interface in        order to be able to use the application. As people grow        accustomed to Web-browsers, this will be their preferred        user-interface. The consistent interface provided by the        Web-browsers will help reduce the learning curve necessary for        becoming familiar with new applications.    -   G3. Where appropriate, applications should be developed with        multi-media capabilities for the presentation of data (text,        sound, video, etc.).    -   The ability to digitize, organize, and deliver textual,        graphical and other information (e.g., video, audio, etc.) in        addition to traditional data to a broader audience, enables new        methods for people and enterprises to work together. Netcentric        technologies (e.g., HTML documents, plug-ins, Java, etc.) and        standardization of media information formats enable support for        these types of complex documents and applications. Network        bandwidth remains a performance issue. However advances in        network technologies and compression techniques continue to make        richer media-enabled documents and applications more feasible on        the Web.    -   G4. The Execution, Operation and Development architectures will        be designed to support frequent releases of        enhancements/modifications to production applications.    -   It is imperative that companies in the current market place be        able to quickly modify their business processes in order to        address changes in the industry. A Netcentric architecture        simplifies frequent software releases for both internal and        external users of the systems.        Client/Server Network Generation

If, based upon the client's requirements, most of the statements of FIG.88 are true, one should consider an application based upon the ClientServer technology generation.

The following section details the importance of each of the statementsfound in FIG. 88 and should assist in identifying the appropriate answerfor a specific client engagement.

Existing Architecture and Infrastructure 8800

-   -   E1. Other Client Server applications been developed and placed        in production and the client IT organization contains personnel        familiar with client server architecture concepts.    -   As with any new technology, there is a learning curve related to        attaining client server development skills. The development        process is often much more efficient when familiar tools and        environments are used. The introduction of new technology can        also create instability in the operations environment.        Client/server systems still represent a new technology to many        IT departments.        Business Imperatives 8802    -   B1. The application will be used only by an internal user        community.    -   Software distribution is a concern for traditional client server        computing environments due to the fact that executable and data        files need to reside on the client hard drive. Distribution to a        user community outside of the client's organization is even more        difficult to implement and manage and will probably be limited        to a few key business partners.    -   B2. The application requires an advanced, dynamic, and        integrated user interface for expert users.    -   State of the art 4GL and 3GL development languages will support        advanced user interfaces which require a significant degree of        context management between fields and windows. Web-based user        interfaces do not support such interfaces well yet.    -   B3. Session performance is critical to the application or        sub-second response times are required for successful use.    -   Client server applications can provide response times necessary        to support transaction intensive mission critical systems.        Application logic and business data can be distributed between        the client and server for optimal efficiency. Web-based        interfaces still have an inherent overhead due to the        connectionless communication and constant downloading of data,        formatting information and applet code.    -   B4. The application needs to support off-line mobile users.    -   Mobile computing is becoming more prevalent in the work place,        therefore, connectivity to a server cannot be assumed for all        user classes. A client server architecture allows for the        distribution of application logic and/or data between the server        and client. Replication of data and logic is usually necessary        for applications that are run on portable computers.        IT Guiding Principles 8804    -   G1. The client maintains their applications internally and the        IT department has the necessary resources, organizations and        processes to maintain a Client Server application.    -   Introduction of a Client Server application to a company's        production environment can require a great deal of change to the        Execution, Operations and Development architectures required to        develop, run and support the production systems. Before a Client        Server application is developed, it is important that the client        identify how a system of this type will fit within the company's        strategic technology plan.        Host Architecture Generation

If the clients business and technical requirements meet the followingsystem characteristics, consideration should be given to an applicationbased upon the Host technology generation.

The following section details the importance of each of the statementsfound in FIG. 89 and should assist in identifying the appropriate answerfor a specific client engagement.

Existing Architecture and Infrastructure 8900

-   -   E1. The client currently maintains and operates host based        applications and the IT organization contains personnel familiar        with the development and operation of these types of        applications.    -   Few organizations introduce solely host based production        systems. Usually the infrastructure for this type of systems        already exists. New development is uncommon, typically existing        legacy systems need to be extended.    -   Host systems usually have a mature and stable operations        environment. Note that mainframe expertise is currently        expensive and in high demand        Business Imperatives 8902    -   B1. The application will only be used by a dedicated, expert        user community where a GUI is not needed.    -   A dedicated work force with low turnaround, skilled in the use        of character based 3270 applications, eliminates the need for a        GUI interface.    -   B2. The application requires a high volume of repetitive        transactions.    -   The high degree of processing power provided by mainframes        allows for the development of applications with very high        performance requirements.    -   B3. The application has a requirement for significant batch        processing.    -   Mainframes are probably still the most powerful platforms for        large scale batch processing. Mature tools exist for scheduling,        recovery/restart, sorting, merging, and moving large sets of        data.    -   B4. End users can maintain a physical connection to the host at        all times.    -   Physical connection to the host is required for use of the        applications. Methods of mobile computing with distribution of        data or business logic is not possible.    -   BS. The application will need to support a large number of users        (>1000).    -   The processing power of today's mainframe lends itself well to        the development of large scale, mission critical applications        with a large user base.        IP Guiding Principles 8904

G1. The Client has the resources, organizations and processes necessaryfor the development and operation of a Host based application.

Before a Host based application is developed, it is important that theclient identify how a system of this type will fit within the company'sstrategic technology plan.

G2. Reliance upon a single vendor (IBM) for technology solutions isacceptable.

Selection of a host based architecture inherently locks the client intodependence upon one vendor for its technology solutions. While IBM® is areputable, stable company it is important to ensure that the client'slong term business strategy will be supported by IBM's technology visionand direction.

G3. Centralized application and data is an acceptable strategy.

A pure host based architecture eliminates the possibility ofdistributing data or business logic to the client. This removes some ofthe application performance benefits which can be seen by a distributionstrategy, however, centralized access to the business logic and businessdata can improve operational stability and lower costs.

A current trend is to transform mainframe based legacy systems intodata- and application servers in a multi-tiered client/server orNetcentric architecture.

Overview of the Frameworks

The following should be born in mind when considering what framework touse:

-   -   when the various frameworks in DAF can be useful    -   how the frameworks are related        Frameworks Related to Delivery Vehicles

Most of the frameworks in DAF address various aspects of DeliveryVehicle architectures.

DAF provides access to a thought process regarding leadership andarchitecture frameworks for Execution, Development and Operationsenvironments. Very briefly, DAF covers:

The Core Execution Architecture frameworks for the differentarchitecture generations (Host, ClientServer and Netcentric). Most userswill primarily use the Netcentric framework.

The Execution Architecture Extensions. This is a collection of commondelivery vehicles. These frameworks extend the core frameworks withservices specific for a particular delivery vehicle.

The Development Architecture Framework should help with theestablishment and operation of a high-quality development environment.

The Operations Architecture Framework should help with the establishmentand operation of a high-quality operations environment.

eCommerce Application Framework

Framework Overview

The eCommerce market is rapidly emerging. This is evidenced by thegrowing numbers of new eCommerce transactional sites, the increasingnumber of ‘exchange of value’ transactions performed daily, theemergence of new entities and businesses focusing on the electronicmarketplace, the convergence and partnering of existing businesses onthe electronic marketplace, and the empowerment of the everyday user tosatisfy their needs within the evolving electronic marketplace.

One definition of eCommerce is: ‘A commercial exchange of value betweenan enterprise and an external entity—either an upstream supplier, apartner, or a down-stream customer—over a universal, ubiquitouselectronic medium.’

The eCommerce Application Framework 9000 in DAF is illustrated in FIG.90. The eCommerce Application Framework (eCaf) identifies and describesthe application capabilities useful or necessary to implementingeCommerce business solutions. It provides a framework to tie businessprocess, application, and technology aspects of eCommerce together, anda basis for mapping and assessing the capabilities of the eCommercepackaged solutions. This framework should be used as a vehicle forcommunicating, and designing eCommerce business solutions.

The eCommerce Application Framework has been created to provide anunderstanding of the types of services and applications needed toimplement an eCommerce solution. FIG. 91 illustrates the relationshipbetween the eCommerce Application Framework 9000, the possible eCommerceSelling Models 9102, enabling technology 9104, and enabling eCommerceSoftware Packages 9106.

The eCaf defines a supporting middle layer between basic Internet orNetcentric enabled products (eCommerce Package Software) and thetechnical infrastructure (Enabling Technology) needed to developeCommerce-enabled web sites based on a business-specific selling model(eCommerce Selling Models). Note that eCaf just covers the middle layer.

Each solution or site may have a different selling approach,architecture, utilization of technology, or applications. The eCafincludes the concepts, applications, and services common across thedifferent solutions and has organized them into applicationcapabilities.

Technologically eCommerce business capability requires a logicalgrouping of services enabling a specific eCommerce functionality. Thefunctionality may be a single technical service within the underlyingarchitecture or an entire application. The capabilities have beenderived from surveying multiple eCommerce software packages andeCommerce implementations. As eCommerce evolves, the categories andcapabilities are apt to change.

eCommerce Application Framework in DAF

In DAF the capabilities are presented as framework components andsubcomponents. The eCommerce capabilities illustrate the highest levelcategories of eCommerce capabilities: External Agents, ElectronicMerchandising, Relationship Management, Maintenance & Administration,Order Processing, Customer Services, Security, Decision Support,Integration.

The capabilities within a given category may cover the full range ofpotential selling models. Some components may be specific only to abusiness-to-business buyer-centric implementation. Additional componentsmay emerge as this technology matures.

It should be borne in mind that the eCaf documentation in DAF focuses onthe eCaf capabilities. The enabling technology is discussed elsewhere inDAF (see below). The selling models and eCommerce Package Software arediscussed only briefly.

eCommerce Enabling Technology

The enabling technology for an eCommerce implementation is the sameunderlying technology used to enable most Netcentric (and in some casesclient server) implementations. In general, most implementations willutilize the Netcentric technologies. An understanding of the Netcentricframework will act as a building block for understanding the technologyaspects of an eCommerce solution. Information on the Netcentricframework is found in the patent application entitled A SYSTEM, METHODAND ARTICLE OF MANUFACTURE FOR BASE SERVICES PATTERNS IN A NETCENTRICENVIRONMENT, Ser. No. 09/387,653, filed Aug. 31, 199 and which is hereinincorporated by reference in its entirety.

eCommerce Selling Models

A wide variety of eCommerce solutions fall under the broad umbrella termof “eCommerce.” The vague definition of eCommerce lends itself to arange of implementations and possibilities. A survey of the sites withinthe current electronic marketplace reveals the majority of thetransactional ‘exchange of value’ solutions concentrate on selling‘products.’ Products can be further divided into physical andelectronic.

Physical—Any tangible product the buyer can touch or feel (for example,cars, refrigerators, food, or furniture). This would include retail anddurable goods.

Electronic—Any product delivered over an electronic medium. This mayinclude content, information, audio and video, or software (for example,music, or financial products such as insurance or mutual funds).

Across the many ‘exchange of value’ sites, there are three prevalentselling models: seller-centric, buyer-centric, and auction.

Seller-Centric Selling Model

The seller-centric model is the most common. In its simplest form, acompany typically provides information about their products and givesthe customer the ability to place orders. More advanced implementationsuse electronic means for supporting the entire sales and support processincluding: marketing, product display, merchandizing, customer needsassessment, order processing, and many other activities. In mostseller-centric solutions, the infrastructure is created and maintainedby the merchant. The customer needs nothing more than a browser and/oraccess to the site.

Buyer-Centric Selling Model

In a buyer-centric solution, the main focus is on customer or buyertrying to fulfill a need for a product. In contrast to Seller-Centricsites which offer products, a buyer-centric site displays items thebuyer would like to purchase-in effect trying to lure sellers. Many ofthe same capabilities as seller-centric sites are needed such as ordermanagement and payment capabilities. In this case, the customer joins orcreates an infrastructure focused on fulfilling his needs. Theinfrastructure typically provides an environment between the tradingpartners which promotes browsing and comparing products, orderingproducts, fulfillment, payment, and any needed customer supportservices. A concentration should be placed on the case of transactionsand information flow. For this reason, sellers may customize theirproduct line to the buyers' specific needs.

In most buyer-centric cases, the buyer or often a consortium of buyers,provides the bulk of the eCommerce infrastructure. Additionalintegration and setup may or may not be required for each of the tradingpartners who wishes to participate. Implementations requiring sellers tospecially configure or integrate their own systems in order toparticipate are usually only successful where the buyer has substantialmarket power in the relationship, as in GM® or Ford® buying parts fromtheir suppliers. In such cases, agreements must be made as to whatinformation is to be shared, how to model the information, the standardsfor messaging and communication, and what technologies will be used.Besides the technical hurdle of integrating multiple systems and thesomewhat immature state of the software products to date, convincingtrading partners to adopt an Internet commerce approach can also be verydifficult. If one is not a particularly big or powerful buyer, it can bedifficult to attract potential sellers to come to one's site and spendthe time necessary to learn about one's needs. This requires sellers toengage in a very different activity than they have traditionallyperformed and many are not eager to change their way of doing businessfor a relatively small customer.

This section of the market has been slower to emerge. As mentionedabove, trading partner maintenance is a key issue. Companies at the endof the hub must buy into the hub's practices and vision. Future visionand direction are also important. As changes are implemented, alltrading partners have to move together. Getting buy in from all partnershas the potential to slow down the adoption of new technologies andprocess innovations which over time can lead to a lack luster lowestcommon denominator approach.

Broker Selling Model

Broker or auction type solutions are also emerging, albeit more slowly.Broker implementations don't typically sell their own goods, but ratherprovide an eCommerce environment to facilitate bringing multiple buyersand sellers together. Both buyers and sellers can utilize the broker'ssite and infrastructure rather than developing and maintaining their owneCommerce capabilities. In this case, a broker has set up theinfrastructure needed to buy and sell goods. The infrastructure will bevery similar to a seller-centric solution with the addition ofcomponents needed to register goods to be sold (or in a buyer-centrictwist-register RFQ's ‘request for quote’), price negotiation andbidding, and reconciliation services.

A Trading Network (TN) is an excellent business example of a brokersite. Users of the TN can issue Request For Quote's (RFQ'S) on thetrading network. The request could be for raw materials, components, orfinished items. Suppliers are free to answer an RFQ providing they meetsome basic guidelines and requirements. The network provides a truewin-win relationship. Since the network can be global, suppliers thepurchaser may never have known about are free to participate.

Another example on the consumer side is a sales website. Such a siteoffers a variety of computer, electronic and fitness goods as well as ageneral merchandise auction. Customers can browse items in order to viewproduct information and their current bid prices. Interested buyers canplace a bid online and see how their bid price compares with others. Theauctions are time based and follow a detailed bidding process. Ascustomers are out bid, they are notified via email and have the optionto reply with a counter bid.

Packaged eCommerce Software

In relation to packaged eCommerce Software, the eCaf framework providesa basis for understanding and assessing the capabilities of theeCommerce packages.

If a package is used to implement part of the eCommerce solution, ananalysis of its underlying technology and business requirements withrespect to the Netcentric Framework and the selling models should beconducted. It is important to understand the underlying architecture andany inherent application limitations due to the package's choice oftechnology used to implement its architecture. In short, it is importantto understand what comes ‘out of the box.’ Be sure to understand each ofthe main components described by the Netcentric Framework (e.g. WebBrowser, Web Server), how the components communicate, and anylimitations of the package and architecture of the component.

A multitude of different packages are emerging usually with the namesounding something similar to ‘eCommerce Server.’ Each package may boastto be different in the problem it is addressing, the architecture, orthe underlying processes and technology. In addition, it may claim toprovide an ‘end-to-end solution’ for businesses wishing to transact onthe Internet. It is currently very difficult to differentiate betweenthe products. The eCAF provides a basis for understanding and assessingthe capabilities of existing eCommerce packages as well as thoseemerging.

The current eCommerce software packages can be classified in thefollowing categories:

-   eCommerce Toolset This category would include any set of tools or    components with which an eCommerce application can be built.    Examples include the multitude of ‘Cyber Wallets’ or electronic cash    components.-   eCommerce Internet Applications This category includes software    geared toward providing an application for specific eCommerce    business functions or processes. This product would be a template or    is in itself a specific eCommerce-enabled application. An example    would include products providing the ability for cataloging or help    desk functions. This is often referred to as vertical solutions.-   eCommerce Transactional Infrastructure This category includes    software packages providing the infrastructure to support multiple    transactional eCommerce applications. These types of solutions    provide the transactional infrastructure used for multiple sites.

A complex eCommerce solution potentially may utilize software from allthree of these categories in addition to any custom code needed tointegrate them.

External Agents 1002

FIG. 92 illustrates a flowchart for a method 9200 for automatedperformance of services on a network. When a request for a service isreceived over a network in operation 9202, information about a producton the network is searched in operation in order to perform the service.Data including the price of the product is selected from the informationon the network and the service is performed utilizing the data inoperations 9206 and 9208.

The service may include making suggestions based on a user's profile andhistory. The service requested may also include retrieval of data.Thirdly, the service requested may include a product comparison. As anoption, the data may further include detailed product attributes. Asanother option, the services of other agents may also be used to performthe service.

On the Internet, an agent 9300 (also called an intelligent agent) is aprogram that gathers information or performs some other service withoutthe immediate of a user. See FIGS. 90 and 93. Typically, an agent, usingparameters provided by the user, searches all or some part of theInternet, gathers the requested information, and presents it back to therequesting user. Intelligent external agent technology will continue togrow as the eCommerce market develops. As the market saturates withproducts and information, the need for techniques or agents to filterthis information will grow.

Business Drivers

Despite the vast amount of information and tools available on theInternet, it is still passive, requiring the user to browse throughtremendous amounts of information in order to obtain what they need. Theintroduction of advanced intelligent agent technology will potentiallytransform the Internet into an active network through which users candelegate tasks to computer programs to complete on their behalf. Anagent in accordance with an embodiment of the present invention has theability to transport itself from one place in the network to another,filtering through relevant information in order to perform its task. Thesoftware can be designed to make suggestions based on the user's profileand history, and change its behavior as it learns from experience andinteractions with other agents.

Intelligent Agents may have the following characteristics:

-   Mobility—the ability to move around an electronic network;-   Autonomy—agents operate without the direct intervention of humans or    others, and have some kind of control over their actions and    internal state;-   Adaptability—an agent may be able to adjust itself to the habits,    working methods and preferences of its user.

An exemplary agent is a Bargain Finder. The Bargain Finder agent is anintelligent agent used for comparative shopping for music CDs. A usercan request the agent to search based on a specific artist and album.The agent would search its known sources, gather the needed information,and return a comparison list with prices and specifications to therequester. If this concept is applied to the business world, thepotential value increases dramatically.

A business may utilize a similar concept but on a much grander scale,allowing the user to take advantage of the lowest available price.Providing there are ample suppliers, a business may create an agent tosearch for the best prices on construction materials or assemblycomponents. In this case, the agent could provide substantial savings inmaterial costs and personnel.

Inbound vs. Outbound Agents

From a site's perspective, there are inbound and outbound agents. Anoutbound agent would be an agent a site sends out to gather information.For example, a site selling digital goods may embed a specific digitalwatermark within its digital goods. It could then create an agent tosearch the Web for this digital watermark to determine if unauthorizeduses exist. Another example would be competitive analysis. A site maycreate an agent for polling competing sites for current prices andproduct list in order to price the site's own items competitively.

On the other hand, the site may deal with inbound agents. The emergenceof the comprehensive intelligent shopping assistant is a prime exampleof inbound agents. Agents may enter a site in an attempt to gatherinformation about products, availability and prices. For example, anInternet shopper may use a ‘shopping agent’ to submit a request for aparticular product. The shopping agent determines which sites maycontain relevant information, interacts with the site in order to gatherany needed information, and prepares a report for the user includingdetailed product information, product comparisons, and pricing lists.From the site selling goods, the agent may be viewed as in inboundcustomer.

In essence, an agent is both inbound and outbound, depending on theperspective of the site. If the site is the initiator of the agent, theagent is viewed as outbound. This same agent is viewed as inbound to thesites it interacts with to gather information.

Agent Technology

The technology behind agents is continually evolving. Agents generallyrequire more distributed processing and communication capabilities thanare currently offered by networking and computing standards such asTCP/IP and CORBA. These standards cannot accommodate the flexibility andvariety of interaction needed among agents, users, and other agents andsystems. As it is available now, middleware support to inter-processcommunication is quite primitive. TCP/IP fulfills the necessarytransport function; Remote Procedure Call (RPC) and socket librariesallow for the basic exchange of information and invocation of procedureson top of TCP/IP; and CORBA adds routing, names services and data typetranslation.

Flexible, tailorable interactions among agents, users, and other agentsand systems require a language and protocols for specifying orcustomizing the behavior of agents, regardless of their mobility. Somestatements of the language will allow flexible interactions with aspecific component of the agent-interface to services. These servicemediators will allow incoming agents to query for the nature of providedservices and conditions of their usage. Research is underway on suchlanguages, their semantics, their syntax and how they should beintegrated with agent systems.

Peer-to-peer computing allows work stations to concurrently send andhost multiple requests for services. Security, reliability and integrityissues need to be explored, especially because the market has highexpectations for these areas in client/server environments. Asynchronousdistributed computing is best handled with mobile agents. Rather thancoding a long-lasting, complex exchange of messages between a client andpossibly multiple servers, a mobile agent carries a compact program withall the required procedures for the interaction to be executed remotely.

Electronic Merchandising 1004

FIG. 94 illustrates a flowchart for a method 9400 for suggestingproducts over a network. Information of a product is displayed inoperation 9402. The product information includes product specifications,graphics, video images, digital samples, and/or inventory availability.In operation 9404, a search mechanism is provided for searching foritems similar to the product over a network. Items found during thesearch similar to the product are suggested in operation 9406. Selectionof the product and the items similar to the product is allowed forpurchase over the network in operation 9408.

As an option, a downloadable sample of the product may also be provided.As another option, user-created customization of the product may also beallowed. Also, compatibility and/or equivalence of the product may beevaluated with regards to the items similar to the product.

Optionally, a price of the product or the items similar to the productmay be generated based on a customer profile, a customer type, and/or ageographic location. Additionally, one or more of a special offering anda sale of the product or the items similar to the product may begenerated for a customer based on a customer profile, a customer type,and/or a geographic location.

Electronic merchandising introduces a new medium, the Internet, formerchants to sell their products. As shown in FIG. 95, the merchandisingcomponent consists of services needed to deliver product, pricing, andinventory information. These services may directly interact with thepersonalization services in order to deliver the information in acustomized format. A traditional example of this would bewindow-shopping, merchandise browsing, or any informative interactionwith the sales clerk.

There are tremendous benefits in adapting electronic (or dynamic)merchandising. Listed below are some of the benefits.

-   Amount of Information—The Internet is an excellent medium for    selling information-intensive products. In addition, the information    can be updated as needed. Customers will no longer worry about    outdated catalogs and information.-   Location—The Internet is geographically independent. A single site    can potentially serve the global community.-   Availability—In addition, the merchant does not need to worry about    store hours. The site can be open for business 24×7.-   Catalog Sales Model—The catalog sales model migrates naturally to    the Internet. Shoppers can click on a product to see a larger    picture and more detailed information. An intelligent agent can    suggest similar items or others matching the tastes of the    individual. Special offerings and sales can be generated dynamically    for each customer at the time of the visit. Catalogs could even be    sent as email attachments once per month, with links back to the    main site for more information.-   Convenience Services—Convenience services, such as grocery shopping    and virtual flower shops, are successful on the Internet. Busy    consumers can choose a greeting card from a huge online catalog, add    a personal message, and have it sent on any day they specify.-   Digital Goods—Digital goods, such as news, research, or data and    graphic media like art and photography, are ideal for eCommerce.    Buyers can take immediate delivery at the time of purchase,    providing instant gratification and peace of mind. The seller does    not receive payment until the goods are received.-   Large Selection of Goods—Online stores can have “virtual    inventories” with a depth that would be impossible or prohibitively    expensive to duplicate in the physical world.    Product Information (Catalog Services) 9500

There are many different styles and metaphors for electronicmerchandising. The basic underlying concept is providing productinformation to the end user. Product information may include productspecifications, graphics or video images, digital samples, or eveninventory availability. The approach for displaying this information maydiffer based on a Business-to-Consumer or Business-to-Businessimplementation. The most common implementation is to use the catalogapproach.

Information Storage (Data Model) 9502

The actual storage of the content is important. Product informationstored using static HTML aside, the most common method is in an objector relational database. Many vendors even provide data models for aproduct database. Vendor-provided data models often will need to bemodified in order to meet the specific product detail the systemrequires. It is important to understand the robustness of the data modelas well as the impacts to the system if changes need to be introduced.The system may involve storage and access to many non-discrete datatypes.

Information Delivery 9504

In more complex merchandising implementations, the content may consistof non-discrete data types such as audio and video. The deliverymechanism will need to be able to deliver the data to different accessdevices. Systems will encounter the need to manage non-discrete datatypes such as audio and video data and alternative content in case theaccess type cannot handle the data types.

Information Staging 9506

The ability to deliver new products and information may be critical tostay ahead or match the competition. The speed at which the informationcan be updated and migrated to production is critical. Be sure tounderstand the relationship between the content changes and the correctprocedures to migrate the changes to the production system. The abilityto maintain and grow the site may prove to be key factors in the site'ssuccess.

In most cases, a content staging process should be put in place. In thesimplest format, the procedures for modifying and adding content,testing, validation of content and subject matter, authorization andmigration to production should be documented.

Equivalent Item Identification and Product Comparison 9508

Buyer-Centric solutions may need to implement a method of evaluatingcompatibility and equivalence of products. If the buy site deals withmultiple trading partners, these functions may provide additional costsavings. Getting buy-in from all the trading partners to agree upon acommon model for product information is key for this to be successful.

Dynamic Pricing 9510

Dynamic pricing is the ability to display a different product pricebased on a customer profile, customer type, or any other logicalpossibility. Ties to personalization may be needed to handle pricingschemes based on relationships, terms, volumes, or other potentialcustomer profile items. It is a good practice to base the information ondatabase technologies that allow for quick retrieval and calculation(Note: This is definitely a performance-conscious area).

In addition, the pricing mechanism should be tied to any sort ofdiscounting or promotional incentives. For Business-to-Businessimplementations, contracts and agreements may be in place to drive thespecific pricing. Discounts may be applied on an incremental ortime-oriented basis. A common concept used are electronic coupons orother types of discounts. The customers may have earned or acquired acoupon or other form of discount earlier in the interaction with thesite. The coupon, usually stored on the user's machine, may be appliedto the purchased products.

Product Search 9512

In addition to catalog navigation, the ability to search for specificproducts is crucial. Assuming the site is a seller-centric site, thereare numerous methods of implementing a product search

Product Sampling 9514

Product Sampling—Products able to be sampled over the Internet will sellwell there. Music is one example. A shopper can listen to pieces ofsongs on a CD before deciding to order it.

Custom Product Configuration 9516

Some applications may require the ability for custom part creation orthe combination of individual components the user can combine to fulfilla specific, hard-to-manage, need. Part compatibility and pricing canbecome very complex and unmanageable.

Implementation Consideration

International Considerations

It is important to keep in mind international considerations whendesigning the merchandising component. The obvious considerations arerelated to converting currency and linguistics. In addition to these,there are hidden pitfalls of specific customs that may unknowingly beviolated. Sales of some goods may also be banned in certain countries.

Site Design Considerations

As with designing any site, the layout, design, and navigation aspectsare extremely to important. The home page or entrance to the site iscrucial. There is often a debate as to what level of clutter andorganization is desirable. It is a good practice to research a potentialuser's current standard practices for site design and layout.

Relationship Management 9006

FIG. 96 illustrates a flowchart for a method 9600 for interacting with auser over a network for personalizing a website. A user is identifiedand information about the user is collected in operations 9602 and 9604.A profile of the user is built based on the collected information and aplurality of different contents are managed in operations 9606 and 9608.The profile and the contents are analyzed in order to match attributesof the profile of the user and attributes of the contents in operation9610. The contents which have attributes that match the attributes ofthe profile of the user are then selected and delivered to the user inoperations 9612 and 9614. The user is allowed to manually select whichof the delivered contents are depicted on a display in operation 9616.The user is also allowed in operation 9618 to selectively position thedelivered contents on the display.

The analysis of the profile may occur in real time. The user may also beidentified by using a cookie, receiving user input, and digitalcertificates. As an option, a time when the user last viewed thecontents may also be identified with portions of the contents that havebeen modified or added since the time when the user last viewed thecontents being indicated. As another option, the user may also beallowed to rate the contents.

Further, a potential customer may be selected from a plurality of usersand an act may be performed to entice the potential customer to become areal customer. Also, an activity may further be conducted to retain acurrent customer and a demand generating application may be provided.

Enterprises must respond by capitalizing on the new potential theinteractive mediums offer; to reach, communicate, and interact withcustomers. The way enterprises interact with their customers continuesto change due to demand for increased convenience, better access, higherlevels of interactivity, and faster fulfillment. As a result, morecustomer interactions are done through electronic means (e.g., home PCs,automated teller machines, automated voice response, 800-numbers, andthe Internet). Regardless of the particular medium the customer chooses,it is clear future communications will be increasinglytechnology-enabled and information-intensive and will provide thefoundation for a continuous, two-way dialogue with customers.

The benefits of new media and communications technologies to interactare numerous, enabling enterprises to provide better customer service,to capture valuable information about customer behavior and product use,and to allow greater differentiation at the point of contact. However,most next-generation customer interfaces continue to be designed to behigh tech rather than high touch.

The Relationship Management section of the Ecaf, shown in FIG. 97,covers applications and architecture components geared towardcapitalizing on the interaction with the customer. Within relationshipmanagement, there are two main driving forces: Interactive Marketing9702 and Personalization 9700.

Personalization 9700

Personalization is the continuous process of collecting, analyzing, andusing information about the end-user in order to improve theproductivity and value of their interaction with the organization.

The purpose of personalization is to interact with the customer/userwith the hopes of establishing and building a relationship, increasingsales by catering to the individual customer's needs, cross selling orup selling, and enticing users to return to the site. Unlike any otherbroadcast medium, the Internet was designed for two-way interaction,hence providing the ability to narrow-cast or customize the interactionto the individual user.

Generating demand for a site's products or services and buildingcustomer relationships are crucial for any eCommerce implementation.This is even more evident in seller-centric implementations and hype ormarketing driven implementations. The customization can occur in manyforms. The services and infrastructure can vary drastically depending onthe extent of personalization desired. Each eCommerce package mayapproach personalization using different services and infrastructure.

The enterprise complexity of the personalization approach will drive thearchitecture components and application required to implement anddeliver this strategy. It is critical for the enterprise success tounderstand how the personalization strategy will affect the entireenterprise.

Conceptual Personalization Architecture

The conceptual personalization architecture is independent of enterpriseor industry. Implementing a personalization strategy into an existingsystem or a new one requires the design and development ofpersonalization architecture components. These components are essentialto the success of the personalization strategy. They include anIdentification component 9710 to identify the user, Information Capturecomponent 9712 to capture information about the user, Content Catalogcomponent to manage the different contents in the system, Matchingcomponent 9716 to match the user's profile attributes with the correctcontent, Merge & Deliver component 9718 to deliver the content to theuser and an Optimization & Administration component 9720 to continuouslyoptimize the personalization interaction and administrate the rules andcontent as they change or added. See FIG. 97. By way of example, theconceptual personalization architecture components illustrated in FIG.98 will be discussed in detail in the subcomponents of this component.

Personalization Techniques

There is currently a lot of hype and press attention centered on theidea of “personalization”. Given the wide variety of products and ideasbeing labeled “personalization”, it is apparent that a variety ofdifferent personalization delivery techniques and technologies areevolving. As with most emerging concepts, the initial techniques cover awide range of complexity in both infrastructure and approach. Mostpersonalized sites use a combination of techniques. Samplings ofpersonalization techniques are presented below:

User Acknowledgement

This is acknowledging the user or greeting them with a personalizedstatement. The statement may be a simple ‘Welcome back <user name>!’message or it may be more complex, drawing on information from the lastinteraction.

Personalized Interface

In this approach, the application or web site's user interface iscustomized for the individual. The actual page layout or page design isaltered based on the individual interacting with the system. Thiscategory can be sub-divided based on who (the site or the user) controlshow the interface is altered.

Site Morphing. Site morphing is when the site alters the user'sinterface. The site may alter the page's layout, the subjects or typesof content and information, or the site capabilities based on what isknown about the user. A variety of different user attributes oralgorithms can be used to customize the user's interface.

Customer Strategy. The site's interface may alter based on a customerstatus or customer strategy. A customer strategy might attempt tointeract with new site visitors with an interface geared towardselection (what is the potential value of this customer?) andacquisition (how do we acquire this customer?) while gearing theinterface and interaction for an existing customer to retention andextension (selling additional products, allowing the customer to be selfserving, or making it easier to do business with the company).

Customer Status. The site's interface can be altered based on the statusof the customer. For example, a United Airline® site could be customizedbased on the user's Mileage Plus® status. Non-members would have a verygeneric site where they can perform the basic site functions. MileagePlus members would have additional capabilities (such as flight history,mileage status or customer service chat) as well as different sitelayouts and attributes based on their exact status.

Intent Determination. This technique attempts to pre-determine thepurpose of the user's visit to the site and customize the navigation anduser interface to help the user quickly perform these actions. Based onthe user's information and past actions, it can often be determined themost likely reason the user is logging on and thus make those functionsor information immediately available—front and center. Assume the UnitedAirline site used intent determination to create a personalizedinterface. Over time, the site learns that the user regularly checktheir mileage status, the in-flight movie listings, food servicelisting, and airport maps. The site also notices that the last twointeractions, the user has called to upgrade to First Class. The nexttime the user logs in, realizing the customer has an upcoming flightreservation to Chicago, an O'Hare terminal map, the in-flight movie, anddinner menu is automatically displayed as well as a prompt asking theuser if they would like to upgrade to first class. The power of thisconcept becomes increasingly important as more functional web-sites aredeployed that allow the user to do possibly hundreds of differentthings. Users are already complaining about the ability to navigate evenrelatively simple sites. Personalized intent determination seeks to“de-clutter” the company's site and demonstrate to the user that thecompany “knows” them and what is important to them. Good intentdetermination is not easy to implement, but holds real power for makingcustomer-based applications easier, and more likely to be used.

User Configured Interface. The user controls the site's configuration.In this case, the site provides a facility that allows the user toconfigure the page layout, and the subjects, links or content that thepage will contain. Once configured, the user has a customized pageconfigured to their specification. When the user enters the site, theuser-configured interface is loaded. Within the user-configured site,the user has the ability to configure their own site by selecting thelayout, topics and content details that will be displayed by selectingitems from defined menu of configuration options.

Content Filtering

This technique filters the information or content displayed to the userbased on what is entered by, or known about the user. Many personalizedsites use some form of content filtering. A variety of differentfiltering techniques have emerged. Some are adaptations of traditionalclient/server techniques adapted to the Web. In the first grouping oftechniques presented here, the user controls how the information isfiltered.

User-controlled, explicit content filtering. Techniques in this categoryenable the user to filter data or content.

Personalized Information. Allows the user to see information specific tothem. The content in this case may be information about the user'sprofile, about products they have or a past order history. Thistechnique allows the user to filter the data by building ‘where clause’statement or execute ‘canned’ queries. It is often used when the user isfamiliar with the data and wishes to organize or filter it in multipleways.

User-controlled, implicit content filtering.

Collaborative filtering. Collaborative filtering determines clusters ofusers with similar interests, either by asking users explicitly or byobserving user selections and actions to determine those interestsimplicitly. This is an effective technique for creating recommendationsfor products.

Site controlled content filtering.

-   -   Contextual Inferences. Contextual inference uses        human-determined rules to select content based on behavior,        interest or other profile attributes.    -   What's New. Based on knowing when the user last visited, the        site determines what content has changed since the last time the        user has interacted with the site and display a list of changes.        A personalized “what's new” is far more effective than a generic        “what's new” that is shown to all users—obviously what's new is        different for the user who was here yesterday versus the one who        hasn't used the site in six months. The content that is marked        as new may be further constrained to only contain the areas that        the user has interacted with in the past.        Configure Process or Fastpath

This technique simplifies a complex process or repetitive task bystoring the user's preferences and inputs required to complete theprocess. In most cases a series of pre-defined questions and preferenceshave to be set up in order to use this functionality. 1-Click purchasingcan be offered which allows a user to select an item with a single clickand purchase the item—by-passing the order selection, order form,shipping and payment pages. A Fastpath approach can be used where theuser has performed the function before and allowed the application orweb site to retain more static information like shipping address.

Pre-filled Forms and Information

In situations where user data is required to complete an action, thesite can use information that it currently has about the user topre-fill the form. For example, the site may fill out the order formwith the user's last address and order information or the site may fillout the list of items ordered last. This approach differs fromFastpathing in that the user still sees the pre-filled form and has theopportunity to change the data.

Personal Assistant

The site provides an interactive assistant to deliver ‘personalized helpand assistance’. Its purpose is to help the user with difficult actionsand site functionality. Based on observing and recording how often (ifever) the user has used a give function within the site, tips,suggestions, and other forms of assistance can be fine tuned to theuser's level of experience.

Non-interactive Delivery Techniques

Most of the personalization techniques described above are interactivepersonalization techniques. Content and information is personalized forthe user in real time—while the user interacts with the application orsite. Some forms of personalization can also be used in anon-interactive, or “push” mode

“Push” (or “server-push”) is where the delivery of information to a useron the Web is triggered and initiated by the information server ratherthan by the user.

In fact, the information pushed from a server to a user actually comesas the result of a subscription-like standing request created by theuser and either stored on the server or on their local machine. Thisprogram captures and stores the user's profile locally and thenperiodically initiates requests for information on the user's behalffrom the server.

Push technologies enable an enterprise to reach and provide value totheir customer outside of the traditional interactions. Of thepersonalization techniques described above, content filtering doesn'trequire that it be delivered though an interactive session. Keep in mindthat push does not necessarily mean personalized. A site may simple pushthe same information to all users or subscribers. Personalized pushrefers to information that is filtered based on a specific user'srequest or profile or where the delivery is scheduled for a specificuser. There are a variety of different legitimate business reasons topush a users information. The following are some examples ofpersonalized push:

-   Information Delivery. A user subscribes to receive information on a    scheduled basis. The information that is pushed is either determined    through user selection—the user selects the subjects and type of    information that they wish to receive, or the site determines what    information the user may be interested in receiving based on their    profile information. For example, at an investment web site, users    are allowed to subscribe to investment information feeds. The user    decided to receive a daily feed of the stock quotes for the    commodities they hold. The site pushes this information and    additionally pushes news articles and stock recommendations based on    the user's portfolio holdings.-   Event Reminders. The user subscribes to receive event reminders from    the web site. An event reminder might remind the user of specific    dates of interest such as a birthday or anniversary, a bill reminder    or that an action is required in the near future.-   Information Update. A site may also push updates to a user. For    example, Microsoft's Expedia allows users to request fare updates. A    user can choose a specific destination of interest. If the fare to    this location changes, the user is notified of the fare update.-   Don't be a junk e-mailer. The push medium is powerful and    potentially less costly than conventional mail. This doesn't justify    its use as junk mail. It does not work because everyone receives    junk mail, and junk mail that ends up in the trash is failed target    marketing efforts. Personalize it. Deliver valuable information that    the customer is interested in. Allow them to select the topics, how    to filter the content and the frequency.    Personalization Process

Personalization is actually a catchall for several underlying technologycapabilities needed to create a personalized interaction between anorganization and a user. By breaking the underlying technology and logicinto simpler components, one can build an understanding of the processesand technology needed to deliver personalized applications.

Personalization is the continuous process of collecting, analyzing, andusing end-user information in order to improve the productivity andvalue of their interaction with the organization. Implicit in thisdefinition is the need to do a number of basic things. Simply put, thereneeds to be some method for identifying the user, collecting (ordetecting) and storing user information, analyzing it, assessing whatcontent or functionality is appropriate, and present it to the user.

FIG. 99 illustrates a simple personalization process 9900. Mostpersonalization techniques utilize this process in some fashion oranother. The complexity and the details of the process may vary based onthe technique. The following is a description of the differentpersonalization process components.

Identification 9902—The first step is to identify the user. This enablesthe rest of the personalization process components. One must know whomone is talking to, in order to personalize “personalize” the experience.

Information Capture 9904—The next step is to collect information aboutthe user. This may be done with implicit or explicit techniques at thedirection of the user, or controlled by the system. The goal is tocapture information that will assist in determining and delivering avaluable interaction.

Analysis and Refinement—Once the data is captured, it may need to berefined before it is usable. The system needs the ability to analyze thedata and draw insight or conclusions about the information andinteraction. The refinement may transform the data from questionnairesor implicit observation to be usable with the matching rules and contentindexing strategy.

Match 9906—When the personalization strategy is developed, a base of‘Personalization Matching Factor’ and rules (based on who, what, where,when, why . . . ) are created. These matching factors and rules arenecessary to determine the content, navigation, and layout appropriatefor the user.

Merge and Delivery 9908—Upon determining the appropriate information andformat, the information needs to be merged and deliverer to the user.This may be through an interactive interface or through a pushmechanism.

Personalization Optimization 9910—Personalization is a complex andevolutionary process. The ability to gather metrics and measurements onthe personalization process in order to perform rule or datatranslations, model tuning and reporting is essential to maximizing theconcept's potential.

Personalization Strategy

Personalization will continue to be adopted by the market place.Numerous sites have incorporated personalization techniques into theirsites and the marketplace is full of independent software vendorscreating personalization related software.

Each enterprise must assess their personalization opportunities fromtheir own perspective and develop their own personalization strategy.The personalization strategy must be integrated with the enterprise'sexisting customer relationship, technology and eCommerce strategies.

Developing a Personalization Strategy

Using the Opportunity matrix given below, the opportunities wherepersonalization typically delivers the most value in within the Interactdomain. This area consists of opportunities where the organization isinteracting with the user or the user is attempting to engage in adialog. The publishing slice and Knowledge Management aspects of theInteract slice are the areas which are typically the secondary areas ofpersonalization opportunity with the transact slice being last.

Process Publish Interact Transact Develop Research and Capture customerIntegrated design products product feedback; . . . Systems andinformation co-design services products Generate Product information;Interactive Demand-generated Demand advertising marketing; PricingMarket of One Fulfill Product availability Customer Order/deliver/pay;Demand information relationship loyalty programs management Plan andPublish policies and Knowledge Internal Manage procedures; managementpurchasing; Enterprise HR & Finance info HR & Benefits systems

When evaluating what opportunities exists, all areas should beconsidered. The value of the personalized interaction will be dependenton many factors such as the type of products and services (can they bepersonalized?) or the type of relationship with the customer or consumerand the ability to capture user information.

A formal personalization strategy should be established that includedthe near term goals and future vision. Many companies jump right inwithout any guidance or realization on how they are growing or enhancingthe enterprise. The strategy should begin with the big picture. Performan examination of the critical forces affecting the enterprise and howthese forces affect the business process. What are the drivers? Society,marketing, technology, business/industry? With the personalizationmarket emerging, there are still with many unproven business cases andunproven technology. Firms should not engage in personalization simplebecause they can, nor should they fall prey to the unproven expectationsgenerated by vendors or marketing hype. Firms consideringpersonalization must frame personalization in the context of trueenterprise goals (increasing customer retention or increase customerextension), then determine how personalization will help accomplishthese goals.

The personalization strategy should evaluate the complexity of thepersonalization, the cost and time to implement and the potentialbusiness impact. In many cases, a true one-to-one personalized site maynot make sense. Creating millions of varieties of a product will onlycomplicate the interaction to the point that the user is overwhelmed. Insome cases engaging in simple personalized dialogues may be the bestnear and midterm solutions.

Since different users may wish to interact differently, there may bemany right answers to the personalization strategy. Some users are selfserving and want to have the tools to explore or make choices on theirown, others want immediacy, others may want intimacy such that theirfeed back and options register with the company. See FIG. 100 for agraphical depiction of personalization from no customization at 10000 toone-on-one personalization at 10002.

The type of dialog that the site engages with the user may vary based onthe user. In some cases no personalization or customization should beperformed. As more information is captured on the user, the correct typeof dialog should be assessed. Determining the correct touch points andlevel of complexity of the personalization techniques is an importantpart of the enterprise's personalization strategy.

Common Impediments to Personalization

Listed below are some of the common impediments to personalization.

Cost—The cost of implementing sophisticated personalization is veryhigh. The annual cost of maintaining a highly personalized Web site willlikely be even greater than the implementation cost.

Software Immaturity—Several of the Web measurement and analytictechniques used to segment users based on behavior and preferences comestraight from academia and have not been adequately tested in the realworld yet.

Vendor Immaturity—Many of the vendors offering the most sophisticatedpersonalization software are small start-ups founded by academics. Thesecompanies are still developing their strategies and growth plans, andare liable to change course over the next few years.

Content Management—Content must be created and stored in such a way thatit can be flexibly combined and frequently modified.

Integration with marketing databases—To be more than a novelty,personalization will require tight integration with marketing databases.This presents a serious integration challenge, and may necessitate thecreation of an enterprise wide strategy for the collection,normalization and analysis of customer data.

Required Maintenance—Personalization requires dedicated maintenance.While much of the process of personalization can be automated, theconstruction of the business rules used to match content to visitors andthe creation of the metadata tags required to classify all content stillrequire a tremendous amount of human oversight. The need for suchoversight is only compounded by the fact that personalization becomesexponentially more complex as the number of visitors and amount ofavailable content increases. The net result is that firms that decide toengage in personalization without ramping up staff adequately will fail.

Personalization Failure—If the personalization technique fails todeliver the correct message or product, the result may be devastating.The last thing a personalization technique should do is destroy ordamage relationships.

Implementation Considerations

The architecture components and processes will differ depending on thetype of personalization technique implemented. For each technique, thereare important considerations and differences that should be understood.Each technique will vary in approach, information required, anddelivery. The following items should be considered:

Triggering the Personalization Process—What triggers the personalizationprocess? Does the user control the process or does the site? Is theprocess triggered when the user requests a page or DCA within a page oris it triggered by a background process based on implicit informationcapture?

User Profile Information—What information does the personalizationprocess require? What is the data source or where is the informationstored? How and when is it captured?

Matching Logic—What drives the matching logic? How is the rule define?Can the user configure the rule? Does the rule optimize and learn byitself? What happens if the information needed does not exist, does thesite attempt to capture it?

Content—What is the potential content? How is it stored? How is thecontent merged and displayed? What is the extent of content management?

Definition and Maintenance—Who is responsible for configuring andmaintaining the rule, matching logic, or Personalization technique? Whatare the metrics that will measure its ROI? How are these metricscapture?

These questions can be answered in many ways. The impact the answershave is dependent on the enterprise and its personalization strategy.

A few specific techniques to consider are detailed here:

-   Personal Acknowledgment—In the case of a personal acknowledgment,    the rule set may be well defined and the user is not even aware that    it exists. There is also no way for the user to alter or customize    the content. An example of the personal acknowledgment would be a    simple greeting that says “Hello <User>, Good Afternoon”. The rule    is based on time of day, as determined by the system time. Once the    user enters the site, the rule is executed. Based on the result to    the system would greet the user with a ‘Good Morning, Good    Afternoon, or Good Evening’. In this case, the rule is set and does    not get altered.-   Content Filtering—Content Filtering works very similar to personal    acknowledgment, but it allows the user to alter the content they    wish to see. The rule set is not as clearly defined as personal    acknowledgment, rather a shell of the rules is in place and the user    has the ability to customize the attributes to the rules. Content    Filtering allows the user to define what it is they wish to see on    their page. On a site, the user is able to select what information    is important for them to view. Users can select whether or not they    want to see information about sports, weather, U.S. news, World    News, states, and many more. Whichever options the user selects, are    the types of stories that will be displayed on their personalized    page. The user should also be given the option to change their    options at any time. In this case, the rule shell is defined,    however the attributes are changeable by the user at any time.-   Custom Interface—The Custom Interface example takes the concepts of    Content Filtering one step farther. In this case, the user not only    has the option of setting the content attributes, but they are also    able to set the page attributes as well. By giving the user the    ability to set the page attributes, they set up the layout of their    page so the items are what they want to see, and where they want to    see them. Here, the same form of the rule shell is used, but the    user also gets many other options that allow them to set up the page    as they desire.

Personal Assistant—The idea of a personal assistant has been popularizedby Microsoft in their addition of the personal assistant to MicrosoftOffice. If one begins to have trouble or is unable to figure out what todo, the Personal Assistant is there to help. This type of interface isdifferent from that of the other types mentioned. In this example, thesystem is designed to be a learning system and is situation based. Thatis, it is designed to monitor what actions the user is performing andtrying to determine if the user is lost. If the system notices the useris continually returning to the section of the site designed to changetheir address, but has not been successful in getting their addresschanged, then the personal assistant would be launched. The assistantwould try to help the user follow the needed steps to change theiraddress successfully. This type of site is not built upon hard-setrules, but rather is designed to learn as much as possible about theuser as it goes.

Identification 9710

The first task of the personalization engine is to identify the user.Unlike the everyday person to person interactions where a person relieson recognizing the another's face, voice or other attributes to identifythe other person, identifying a user on-line can be a difficult process.The simple task of identifying users does not prove to be a simple taskat all. A system may personalize an interaction based on the informationcaptured during a single session or information gathered over the entireduration of the relationship. Regardless, the information that iscaptured needs to be associated with the user. In order to track a user,an identification or tracking mechanism needs to be created.

Identification Techniques

A variety of techniques can be used to identify the user. The techniquemay depend on the site's security requirement and privacy concerns.Today, the most common approaches are to either create a cookie on theclient machine or to have an identification system on the server, suchas a user login. In the future, digital certificates will be moreprevalent, and should become the dominant identification method.

Client Side Storage—Cookie

A Cookie is a small text file placed on the client machine's hard driveby a Web server. It is essentially a user's identification card, andcannot execute code or deliver viruses. It is unique to the user and canonly be used by the server that issued it. Although this is a commonmethod for identifying a user, there are many risks associated with it.

Cookie may expire or be deleted by the user.

Multiple people may use the same client machine. Identifying what useris on the machine may be very complex. This may result in multiplecookies or a complex cookie that can identify multiple users.Regardless, the cookie may not be able to determine what user iscurrently on the system.

A user may use multiple machines. In this case, the new/other machinemay not have the user's cookie and will not be able to identify theuser.

The user has the ability to disable the use of cookies within theirbrowser. There is an option that the user can set that will tell theirbrowser to reject all cookies. If the user does this, then he or shewill be unidentifiable.

Server Side Application Logic

This technique requires the user to log-in or sign on to the site. Thisrequires the creation of a user ID and password to utilize the systemand the resources needed to validate and store the ID and password. Withthis technique, the user must remember their log-in name and password.Additional services to lookup log-in names or request new passwordsshould also be provided.

Certificates and Digital ID's

In every day life people carry different forms of identification; aperson's on-line identity may be no different. Modem cryptographictechnology offers certificates or digital IDs that will serve aselectronic forms of identification. Digital certificates are stillevolving and the key players and details on how the pieces tie togetherare still falling into place.

One example of an effective use of a certificate is Firefly Passport.There the certificate is tied to a list of user profile information.(Microsoft purchased Firefly for this technology. The name is apt tochange over time.) The Firefly Passport gives users an application withwhich to control their personal information and payment details. Theinformation can be dispensed selectively to third parties to use.

A combination of techniques may also be used. The cookie may be used forthe initial identification or the default ID for the Log-in process,while the server side log-in process would then be used to verify theidentity of the user. It is important to make this process seamless andunobtrusive. The identification process should fade in the background.It should be present yet invisible and unobtrusive.

Relating Multiple ID's

Creating a log-in or sign-in process introduces the traditional problemof multiple logins, (or ID's) from a site or enterprise perspective. Ifa user forgets their login, they may simply create a new one. This mayresult in multiple logins for the user, and any information related tothe previous login is not associated to the user's new one. To preventthis, a facility to look up existing login names or request a newpassword should be provided.

As in the client/server world, a single or universal log-in is advised,especially for systems that wish to personalize their site'sinteraction. If the enterprise already has an existing user base,pushing out IDs to users or allowing the ability to re-use the existingID should be encouraged. For example, United Airlines created a PIN(Personal Identification Number) for each of their Mileage Plus membersthat provided access to the Mileage Plus section of their Web site andpushed (physically mailed) this out to the respective user. The PIN wastheir mileage plus number with a password associated with it. By doingthis, they were able to reuse their existing identification process andlogin IDs.

Information Capture 9712

The personalization process is data intensive and is driven by theinformation collected about the system's users. The more information thesite collects and retains about a user, the more likely it can add valueand interact on a personalized level. With out this crucial data, thereis no basis to shape the interaction or drive the personalizationtechniques.

Personalization Profile

The information collected about a user is considered the user's profile.Logically, this is everything the enterprise (site) knows about theuser. Attributes from the user's profile will be the input to thepersonalization process and the driving data for the differentpersonalization techniques. A profiling strategy should be developed bythe enterprise that addresses what information to capture, the sourcesof this information, the methods to capture it, and how this informationwill be stored. If the customer is to be treated the same at all pointsof interaction, a common profile should be developed that is shared byall departments and applications.

Determining what information to capture or what attributes make up theuser's profile can be a difficult process. In most cases, the profilewill be based on the enterprise's personalization strategy, thepersonalization techniques to be implemented, the data required toimplement them and a mix of any user information deemed usable that canto be captured. In general, the site needs to capture the informationrequired to perform the analysis aspect of the personalization processfor each of the personalization technique to be implemented. Thisinformation might include:

-   Basic user information such as name and address.-   User demographics, psychographies, and sociographics such as gender,    height or age.-   User transaction or enterprise data such as purchase history.-   User's specified configuration information such as the attribute's    of the user's personal home page.-   Interaction information such as content viewed or duration of    content displayed to the user.

Each personalization technique may require a different set of attributesfrom the user's profile. The information needed to deliver a ‘SiteControlled Contextual Inferences’ will be very different than theinformation needed for ‘pre-filled forms.’ Site Controlled ContextualInferences Content Filtering requires the creation of rules and thenecessary user information that satisfy the rules or ‘ContextualInference’. (The information required to satisfy a rule is referred toas Personalization Matching Factors (PMFs) and will be discussed in moredetail in the Matching Logic component.) For instance, the rule may bebased on gender, age, purchase history or customer demographics. On theother hand, the information that is used to Pre-Fill forms may be adifferent set of user profile attributes. For example, this might bename, address, shipping information and payment information. Anotherpersonalization technique may use the same set of user information ormay require another subset of user data.

Physically, this data may come from many sources within the enterprise.Information may be gathered directly from the user's interaction withthe personalized site through implicit or explicit information gatheringtechniques. Information may be used from other data sources such asexisting application's transactional data, the enterprises' datawarehouse, or from other internal or external data sources.

The situation should be analyzed to determine if the ‘profile data’should be replicated and stored in additional profile tables or if itshould remain within the existing data source. Some personalizationtechniques will require additional tables to store the user's profileattributes needed to deliver the personalization technique. This will bediscussed in more detail within the Matching section of the paper.

Profiling Standards

The industry has recognized the importance of personalization and therequirement of a user profile information to deliver personalization. Todate, a profiling standard or definition of a common ‘User Profile’ doesnot exist. This means that each site will be required to capture andretain its own set of profile information. From a user's perspective,this introduces additional annoyance since they will be prompted bypersonalized sites for the same basic information. The Open ProfilingStandard has been proposed to address this issue.

Platform for Privacy Preferences and Open Profiling Standards

The Internet Privacy Working Group (IPWG) began to develop the Platformfor Privacy Preferences (P3P). P3P extends the Platform for InternetContent Selection (PICS) standard with notice and consent capabilitiesto enable automatic negotiation of preferences, policies, andinformation exchange. If P3P settings are accurate, Web surfers shouldbe able to surf at will and only see P3P notices when they stray out ofbounds of what is already approved in the profile.

Netscape, FireFly Network Inc. and VeriSign have introduced OpenProfiling Standard (OPS), a proposed standard that helps to address theissues of multiple profiles. This proposed standard would provideInternet site developers with a uniform way of getting users' PersonalProfile information in order to personalize interaction. The OPS is astandard being worked on as part of the World Wide Web Consortium'sPlatform for Privacy Preferences (http://www.w3c.org). It is compatiblewith the existing vCard and X.509 digital certificate technologystandards, which allow for user identification and authentication overthe Web.

Individuals will have a Personal Profile that contains their personalinformation, including their names, e-mail address, mailing address, andany other information they wish to provide. This profile will be storedon their personal computer (or securely stored in a corporate-wide orglobal directory). The first time that an individual visits a Web sitethat supports OPS, the Web site will request information from thePersonal Profile. To protect their privacy, users can decide whetherthey want all or part of the information to be given to publishers, andwhich ones can see it. In addition, if the Web site collects additionalinformation about the individual's preferences, it can (with theindividual's permission) store that information in the Personal Profilefor future use.

Some of the benefits to the user are as follows:

-   Convenience of maintaining only one set of personal information for    many Web sites, which can save time and the inconvenience of giving    the same information to multiple Web sites.-   Enhances personal privacy by allowing users, instead of Web sites,    to have control over releasing this private information to Web sites-   The security that can be offered by possibly encrypting the locally    stored information or the transmission of this information to Web    sites.

Users have the ability to selectively release or withhold information intheir Personal Profiles, rather than the “all or nothing” process ofaccepting or rejecting cookies that the user cannot examine. OPS givesindividuals both more flexibility and more control over personalinformation than cookies can.

P3P and OPS have common goals and have unified their projects. Thegoverning term is now P3P.

Information Capture Techniques

Once the profile strategy has been defined and the sources have beenidentified, the next step is capturing the information. In many cases,the information comes from existing data sources. In these cases thedata may require refinement or replication. The remaining informationcan be captured directly from the user's interaction with the site.

In most cases, the user will control the personalization process ortechnique. In these cases the user is aware of the personalizationtechnique and chooses to use the interface that will deliver it. Forexample, a configured interface such as My Yahoo! requires the user toselect the layout and topics they wish to display on the personalizedpage. The configuration (or setup) interface captures the neededinformation and adds this to the user's logical profile.

On the other end of the spectrum are information capture techniques thatthe site controls. The site collects information about the interaction.The interactive information capture techniques can be categorized asexplicit or implicit.

Explicit Information Capture

Explicit information capture usually provides an interface to collectprofile information. The site explicitly asks the user to provide theinformation. Examples of explicit information capture techniques are:

-   Registration Forms. A form that the user fills out to register to    the site. This may include interests, demographics or any other    profile attributes that site has defined and the user may be willing    to provide.-   Static or Dynamic Questionnaires. During the interaction, the site    may prompt the user to answer questions. The questions may be based    on the answer to the previous question. (Note: The registration form    or a rating interface may also be an example of a questionnaire.)    The site might ask a user a question if there is a Personalization    Knowledge Gap. (A Personalization Knowledge Gap is the difference    between the data required to deliver a specific personalized    interaction and the amount of information the site has collected on    the user.) Another example might be a need assessment questionnaire.    For example Progressive Insurance's site provides a list of    questions used to analyze the user's insurance needs.-   Rating Interface. The site may provide an interface that allows the    user to rate content or products. A rating interface is often used    with collaborative filtering.-   Filter or Query Interface. An interface that allows the user to    directly manipulate or filter the content that is displayed.-   Configuration Interface. An interface that allows the user to    configure the site or select the content to be displayed.    Implicit Information Capture

Implicit Techniques gather information about the interaction withoutdirectly asking the user. In essence, the site is recording theinteraction in search of useful information. The user may be unawarethat the site is capturing information. The most common implicittechnique is clickstream analysis. The site records the user's actions,what they clicked on or where they navigated to, the content displayed,time spent or the duration a graphic was displayed. The informationgathered is then analyzed for patterns and trends.

Information Capture Concerns

The goal of a personalized site is to increase the value of theinteraction of the user with the organization. Unfortunately, the sitehas the potential to do the opposite. The personalization aspects of thesite could actually offend or deter customers. The approach the siteuses for information capture will play a large part in the personalizedsite's success. The following are some items to be aware of whencapturing user profile information:

-   Provide Value. In general, people do not like to give away personal    information. To overcome this, the site needs to offer value for the    information capture or provide a win-win situation. If the    information capture results in something benefiting the user, they    are more likely to provide the information. A good example is the    grocery-preferred card. For instance Jewel Food Stores offered a    preferred card where users receive discounts off of selected    groceries each week. The user must present their card to receive the    discount. Jewel obtains valuable user profile attributes such as    purchase history and trends while the customer receives tangible    discounts. The same analogy can be applied to the explicit    information capture techniques used by the personalized site.-   Small Appropriate Questions. Filling out long forms or    questionnaires can also be an instant turn off. Users don't want to    be burdened by information capture techniques. They have their own    goals and agendas and if the site distracts them from accomplishing    this, the site risks losing a customer. If the information capture    is not directly tied to some value that the user will instantly see,    break it into to small units or single questions. In addition, ask    only what is needed and when it is appropriate. If the user is    required to fill out a long questionnaire at the start of the    interaction or when they first visit the site, they are likely to    leave. By gathering the information only when it is needed and tied    to tangible value, the user is more likely to provide accurate    information and remain at the site.-   Accuracy Issues. There is nothing that stops the users from lying or    providing false information. Although there is no sure-fire way to    prevent this, the site can reduce the possibilities of this    occurring. As mentioned above, users are more likely to be truthful    if when answering questions that are tied to perceived value or in    small amounts. The site should explain the benefit of accurate    information and how it will benefit the user by serving them better.    -   Information may also change over time. The user's interests or        their marital status may change over time. It may be necessary        to occasionally verify information. If derived information is        stored, these may also become inaccurate over time. For example,        driver status may change over time due to the occurrence of        moving violations or a change in marital status. The same risks        apply to information captured implicitly.-   Privacy Issues. The fine line of a user's personal space and their    legal rights is another possible area for concern.-   Regulatory Compliance. The details of a user's legal rights are    still not clear. In the near future, legal regulations will require    all companies to place privacy statements on their Web sites and to    provide customers with a mechanism to examine and challenge personal    data collected about them. Customer access to personal information    will be difficult to implement due to user authentication    requirements, and the unpredictable nature of data requests and    alterations. In either case, failure to comply with a site's stated    privacy policy or failure to provide customers with a copy of their    personal information will mean legal prosecution of organizations    under national regulations.-   Defining Preferences or Personality. The definition of “private”    information is open to debate. For example, the European Data    Protection Directive defines a number of areas (e.g., political    affiliation) that are considered particularly private and,    therefore, subject to enhanced controls. However, the ability of the    Web to follow users' search patterns and to customize content    provided by certain sites (e.g., most current-affairs sites) will    offer the de facto ability to identify users' viewing preferences    without the explicit authorization that the law would require if    they were identifying their own characteristics. This issue will    cause the most friction between U.S. and European regulators, as the    United States tends to assess privacy on the basis of context and    usage, while Europe bases it on an absolute measure of the data's    perceived privacy (see Note 1). The collection of data that could be    used to derive sensitive information will be subject (in each    jurisdiction) to the equivalent privacy regulations as that level of    sensitive information (0.7 probability).-   Children. Vendors whose Web sites are designed for children will be    subject to greater public scrutiny for violations of privacy    regulations and conventions. It will be politically sensitive for    children's Web sites to perform customization of content or context    across multiple visits.-   Selling information to third party providers. General data privacy    guidelines state that information cannot be used in ways not    explained to the subject at the time of collection. The problem    results from the fact that the most personal information (e.g., a    stock portfolio) is also the most valuable when sharing information    with other application providers. This can cause tension between the    value that the Web site provides its visitors (in terms of the    degree of personalization that it is offering) compared with the    value it can extract from the service that it provides (by sharing    the information with advertisers or third-party organizations).    Managing the conflicting requirements of personalization and    information sharing will become a key element in determining the    success of a Web site.    Content Catalog 9714

Today, the Web content of most sites is unmanaged. The enterprise doesnot utilize a method of tracking the content or the attributes of thecontent. Instead, the enterprise has a pool of content that may spanmultiple directories, departments and web servers. When content iscreated it is added to this pool of content by simply adding it to theWeb server's directory and adding the necessary link required to displayit. The content within this pool may be duplicated, outdated or unused.In short, the enterprise has no idea of the extent of the content orinformation about the attributes of the content.

Unmanaged content may be an obstacle for personalization. In order todeliver personalized content or filtered content the system must knowwhat content exists and the attributes of this content. A contentcatalog 10100 or content management system should be used to manage theenterprise's content. A simple definition of a content catalog is givenbelow.

What is deemed as content can take many forms. As illustrated in FIG.101, content may be Web pages (HTML pages) 10102, graphics (images)10104, audio, video, or even information 10106 and messages. How thiscontent is stored may also take many forms; it may be stored in table,files or directories. The content catalog needs to be aware of whatcontent exists and where it is stored. This can be achieved by retainingattributes of the content and providing indexing to the content. Contentattributes might be physical properties such as what type of content itis (HTML page, graphic, audio file, video file or textual message) orthe size of the content. The difficulty is attempting to store theheuristic or analytical attributes and making these attributes availablefor personalization techniques. The indexing strategy should includefull text and attribute indexing which provides efficient access for theenterprise's users and potentially any integrated members of theenterprise's value chain.

Matching Logic 9116

This personalization component needs to provide the intelligence tomatch the user's profile attributes with the correct content and deliverthis content to the user. Bridging the profile information to thecontent is truly the heart of the personalization architecture. Avariety of different approaches can be implemented to accomplish thistask. The complexity of this matching logic is directly proportional tohow flexible, robust and dynamic the personalization aspects of the siteare.

The Match concept is the process of analyzing the information that isknown about the user and determining the correct content to display tothem. Once the user profile attributes have been identified, they mustbe applied against the rules or matching logic defined within the sitein order to determine the appropriate content to display. Three inputsare required in order to complete the Match process:

-   User Profile Information—This information consists of what is known    about the user. The processes used to gather this information are    explained earlier in this section.-   Content Available—The content on the system includes any information    displayed to the user. In this case, content includes; Images, Text,    Personalized Statements, Applets, and Digital Information.-   System Defined Rules or Matching Logic—In order to use the user    profile information effectively, one must have a clear set of rules    defined against which to evaluate each user. The rules are defined    to match the user information with the content

A simple example of this matching logic is a defined query. The site mayprovide the logic for a user to view their account information. In thiscase the profile information is their user ID or account number, therule is the defined query (SELECT account_info FROM Account whereAcct_Id=:User_Acct_Id) and the content is—the user's account informationstored in Account table. If the content is stored in a relational orobject database, SQL queries are an effective method of accessing thisdata. In this case the ‘defined rule’ takes the form of a SQL statement.Unfortunately, most of the content is not stored in relational databasesor is not directly related to something as simple as a user's accountTD. Instead the content is web pages or massive amounts of news feedsand textual information. These situations require a different andpossibly more complex approach and infrastructure to perform thematching logic. In this environment, the rules are usually composed ofPersonalization Matching Factors (PMFs).

Personalization Matching Factor (PMFs)

A Personalization Matching Factor (PMF) is the building block for arule. It is the information required to perform the matching aspect ofthe personalization process. This is thedemographic/psychographic/sociographic or any other information thatwill be needed to drive the personalization process. A PMF might be assimple as the user's gender or a complex attribute such as driver typethat is derived from a group of data. Included in the definition of thePMF should be the definition necessary to create it.

Developing PMFs will require involvement of the Marketing department andother business entities that understand the customer strategy and theenterprise's customers. It is important to understand the customerneeds, what the customer expects, and what makes a difference to themwhen determining and creating PMFs.

PMFs should be restricted to information that can be realisticallycaptured by the site as well as information that is reliable andaccurate. Conceptually, a PMF can be any piece of derived or anyconceived information. For example, a PMF could be the user's gender,age, marital status, number of children, the number of years they havebeen a customer, their profession, driving record, interests such assports, travel or other leisure activities, favorite color, apersonality trait such as if they are detail oriented or pessimistic innature, or any other demographic/psychographic/sociographic piece ofinformation. How would this information be capture? What are theattributes that would be used to derive this? What is the accuracy ofthis information? Why is this PMF used to personalize? These are thetypes of questions that need to be asked when determining possible PMFs.

A PMF needs to have a clear definition and a finite list ofpossibilities. For example, a site may create a PMF called ‘AgeClassification’. The site would need to define what it means by the PMF‘Age Classification’. For this example, age classification is simple alogical group of users based on their age. The values would be:

Age Age Classification  0-12 Child 13-19 Teenager 20-40 Young Adult41-64 Middle Aged  65-125 Senior Citizen 125-200 Ancient

A PMF may also be a combination of low level data. If a PMF of‘Insurance Risk’ were created, the required data would be far more thanage. It would need to include age, driving history, vehicle, region andpotentially other data.

Rules and Matching Logic

The PMFs are the building blocks for rules and matching logic. UnlikeSQL extensions, there is no industry standard method for accessing ‘Web’content and creating rules. Some approaches are detailed below.

-   -   Simple Conditional Rules—The simplest process is to define a        clear-cut set of rules against which to evaluate the PMFs. These        rules are generally simple and have only a few conditions to        evaluate. A simple rule would follow this structure:        -   User Variable+Comparison Operator+Predetermined Value (or            PMF)            -   Age Young Adult (20-40)    -   The user variable is a specific user's profile attribute or        value for the rule's PMF. In this case it is the user's age        which may be derived from the user's birth date and the current        date. The next element in the structure is a comparison        operator. The final element is the PMF or the group or data the        rule is based on. Based on the user's age and the granularity of        the PMF the rule may have numerous results. Each result may        point to a different set of defined content. The entire age rule        may be something like this:

User's age Child (<12) deliver content ABC DEF Teenager (13-19) delivercontent GHI Young Adult (20-40) deliver content JKL Middle Aged (41-64)deliver content MNO Senior (>64) deliver content

-   -   A rule will be made more complex with the addition of a logical        operator that allows a rule to have multiple PMFs. For example a        rule may simply be ‘AND’ multiple PMFs together. In this        example, the rule would look like this:        -   User Variable A+Comparison Operator+Predetermined Value (or            PMF) A            -   AND        -   User Variable B+Comparison Operator+Predetermined Value (or            PMF) B    -   A piece of the actual rule would look like:        -   Age Young Adult (20-40)        -   AND Gender M (Male)    -   This rule would now be the age-gender rule. It evaluates the        user's age classification and gender. If the users age        classification is ‘Young Adult’ and male, then statement        evaluates to be true and action is taken or the specified        content is delivered.    -   At first glance, this may appear to be hard coded. If directly        placed in a script this would be a true statement. Instead, the        infrastructure should be created that can define rules, evaluate        rules, assign a rule to a dynamic content area or page, and        assign content to specific rule results. Instead of hard coding        this with in the application or script, the rule component or        dynamic content area (DCA) is placed in the script. When the DCA        is encountered, the architecture handles evaluating the rule and        matching the defined profile attributes to the rule in order to        deliver the appropriate content.    -   Conceptually this is easy, but creating this infrastructure is        very difficult. For this reason a rule engine or personalization        vendor will be brought in. Numerous independent software vendors        (ISVs) are capitalizing on this niche and creating their own        proprietary personalization infrastructure. These vendors are        covered in more detail in the accompanying Vendor document.    -   Forward Chaining Rules—Forward chaining still uses the        fundamentals of simple rules, but facilitates building upon        whatever user information may be available at the time. In this        case, if only a small amount of information about the user is        available, then the rules are determined based only upon that        data. Once more information is gathered, the rules allow for        more complex conditions to be evaluated against. The rules are        set similar to this:        -   User Variable+Comparison Operator+Predetermined Value (or            PMF)            -   AND if the following is known        -   User Variable+Comparison Operator+Predetermined Value (or            PMF)            -   Age 20-40    -   AND if Gender is known to be M    -   The above rule will be evaluated differently according to the        amount of information known about the user. For instance, if all        that is known about the user is his/her age the rule will        evaluate in one way, if his/her gender is known, then the rule        will be evaluated in another way.    -   Learning System (Neural Network)—The premise behind the learning        system is that it will monitor the user's actions and perform        differently depending upon what the system learns from the user        actions. This technique is a complex combination of rules and        relationships using the user's interactions with the site to        increase the knowledge of the enterprise about the customer. The        best way to describe this is with a definition of neural        networks. A neural network is a system of programs and data        structures approximating the operation of the human brain.        Typically, a neural network is initially “trained” or fed large        amounts of data and rules about data relationships (for example.        A grandfather is older than a person's father is). A program can        then instruct the network how to behave in response to an        external stimulus, or it can initiate activity on its own based        on the user's actions.    -   Inductive reasoning/Collaborative Filtering—Firefly defines        collaborative filtering as a technology that emulate the social        processes of people making recommendations based on an        understanding of one another's preferences. Individual agents        track and choose items based on individuals' tastes and        preferences.    -   The core technology personalizes both the delivery of content        and the knowledge of related people within a defined networked        environment, or “taste space.” Firefly tools correlate        individual users' preferences for specific items based on either        explicit or implicit ratings of comparable items in other        situations. These ratings may be stored entirely within a single        Web site or compiled on the fly from information assembled from        individual clients and shared servers.    -   Collaborative Filtering assesses a single set of user        preferences to identify an individual community of interest.        Collaborative Filtering correlates the tastes on an individual        user with the preferences of comparable users to develop a list        of personalized recommendations. It is some times referred to as        People-to-people matching, and is aimed at automating        word-of-mouth kind of information.    -   Canned Queries—A system of canned queries allows the user to        choose only certain actions that have been pre-determined for        the user. The queries only give the user the options listed, and        do not change over time.

The examples above are mainly site controlled. The site either has apre-defined rule or matching logic that will execute. The site isresponsible for determining what has been learned from the interaction,what is enabled based on the knowledge gained, what additionalinformation will provide additional insight. Where possible, the usersshould be allowed to define the rules and matching logic or the contentthey wish to view. Provide the user the structure to create a rule ordefine a query.

Defining legitimate business rules and models is as important as theinfrastructure to evaluate them. The rule may execute and content may bedelivered but if the rule does't make good business sense the effort iswasted. Business and marketing personnel should be involved in definingthe rules and verifying that they are correctly translated andtechnically implemented. This is another reason that the personalizationteam should include individuals from IT, the business and markingdepartments. The team needs to understand their existing and potentialcustomer, the content available, and when and why to display it.

Merge and Deliver Content 9718

The rules for matching logic should be defined as stand alone entitiesso that they may be reused in multiple situations. Each situation mayassociate the same rule to a different interaction and a different setof content. The matching logic should be associated with a template orinteraction and content should be associated with a rule result orcondition of the matching logic.

One possible method of associating a rule and content to an interactionis by using a Dynamic Content Area (DCA). A DCA is embedded with atemplate and points to a specific rule, and a rule results set will beassociated with specific content. For example a page may be explaining aparticular service to a current user. The site may wish to display onthe page a graphic that the user can relate to along with a list ofbenefits that are personalized to the user and finally list discountsthat the user might be qualified for.

A separate DCA would be used for each set of data. FIG. 102 illustratesan exemplary template 10200 with three DCAs embedded within thetemplate.

-   DCA1 10202 might be a place holder for the graphic. The rule    associated with DCA 1 might be bases on a set of PMFs such as Age    and Gender. Depending on how the rule is evaluated, a different    graphic might be displayed. (In this case a graphic is the content.)-   DCA2 10204 might represent a place holder for a list of benefits the    user may receive from the service. This rule may be associated with    different PMFs. For example, the PMFs for this rule might be marital    status, number and ages of children and income level. Different    benefits would be displayed based on how this rule is evaluated. In    this case a textual statement about benefits is considered the    content.-   DCA3 10206 might represent a place holder for discounts. This area    may reuse the rule created for DCA 2 but the content is different.    In this case, the content is a list of discount based on the rule    evaluation.

During the design of the site, a decision must be made to determinewhich areas of the site will provide personalized content to the user,the rules to use and matching logic associated with it, and what contentshould be displayed for each rule result. Since there is no face-to-faceinteraction with the user, identifying the content to use is veryimportant. The web site must make the users feel as though they arebeing communicated directly. Once the page is requested or encounteredby the user, the page is generated, and each DCA will request that arule be executed and the content should be generated according to theuser profile.

The normal delivery method of the content is through the use of HTTP.This method will be used to deliver the majority of the content. Thereare other methods of delivery that may be considered depending upon thecontent to be delivered. Other delivery methods includes e-mail, FTP,Push or Channels and streaming video. Since timing of the delivery isvery important, consideration must be given to developing a method ofdelivery that provides the most impact to the user and does so in atimely manner.

Administration 9720

Personalization is difficult for a number of reasons, but the biggest“gotcha” is that, above all, it requires dedicated maintenance staffWhile much of the process of personalization can be automated, theconstruction of the business rules used to match content to visitors andthe creation of the metadata tags required to classify all content stillrequire a tremendous amount of human oversight. The need for suchoversight is only compounded by the fact that personalization becomesexponentially more complex as the number of visitors and amount ofavailable content increases. The net result is that firms that decide toengage in personalization without ramping up staff adequately will fail.

Personalization is a continuous process. It is not an application thatis delivered and then left unmonitored or forgotten about.Personalization techniques will need to be added, removed and modified.Rules, content, and messages will change. Most enterprises fail tomeasure their return on investments, or to directly attribute customerbehavior to certain initiatives. As a result, the enterprise ofteninvests in initiatives, promotions and campaigns without understandinghow they will affect product or customer profitability. Procedures,measurement and reporting devices, and metrics need to be created toallow for the enterprise to evaluate and improve their personalizedinteractions and deliver their customer strategy. The site may providethe customer a chance to make a purchasing decision. If they decide notto make this purchase, what is the reason why? The enterprise shouldattempt to gather information on why this result occurs and seek toprevent it in the future. The following optimization and administrationcomponents should be considered for a personalized site:

Content Rating and User Feedback. Allow the users to directly rate theinteraction and the content. The Internet is an interactive medium, butunlike a face to face interaction one can not read the user's face orinflections in their voice to determine if their needs are being met.This type of feedback needs to be built into the site. The interfaceshould be simple where the user can provide feedback with a singleclick.

Metrics Return On Investment/Information. How can one determine if thepersonalization process is helping the enterprise? Metrics should bedefined to measure the ROI. This might include reporting facilities tocapture the information needed to provide these metrics.

Administration Facilities. When designing a personalization site,maintenance of the rules and content should be considered. The peoplemost likely driving this information will not be technology oriented,and may require simple interfaces for altering rules for personalizedcontent. An IS staff member should not be needed to change rules. Thesame holds true for content. As content is added, this information willneed to be indexed and integrated with the search technology implementedat the site.

Interactive Marketing 9702

With the emergence of interactive mediums and the inherent capability togather real time information about the customer interacting with themedium, enterprise's marketing strategies and systems are becoming morecustomer-centric. With the move from mass (or targeted) marketing to aform of customer-centric marketing, enterprises must evaluate theircustomer relationship model.

Traditionally, marketing models tended to focus exclusively on customeracquisition (mass marketing) and then on customer selection(micromarketing and target marketing). However, several studies haveshown it costs between four and)O times as much to acquire a profitablecustomer as it does to retain one. This awareness has resulted in aheightened emphasis on customer retention and extension and has been thedriving force of relationship marketing.

However, customer retention and extension are less dependent ontraditional marketing and are more tied to the value perceived by thecustomer during every interaction with the enterprise. In addition,these strategies require a different marketing infrastructure that isinformation- and customer-driven, rather than product—andcreative-driven. Thus, relationship marketing is somewhat of a misnomer,as adding value to the customer relationship is not simply a marketingchallenge, but rather a challenge involving every function within theenterprise. This business model calls for enterprises to differentiatethemselves by consistently providing superior service at every point ofcontact with the customer.

The ShARE Model

The ShARE (Selection 9730. Acquisition 9732, Retention 9736, andExtension 9734) customer relationship model 10300 is detailed in FIG.103. See also FIG. 97. This model addresses the changes in the shift tointeractive marketing. Due to the emergence of interactive mediums,today's systems now have the ability to address all areas of the ShAREmodel.

Selection 9730

The selection portion of the ShARE model deals with determining whowithin the general population will be a company's most profitablecustomers. Selection deals with determining who makes up a product'starget audience, and allows a company to focus their attention moreaccurately. This is the area where demographic information, such as age,geography, and income are applied to produce a more finite list oflikely customers. The selection process allows businesses to makestrategic decisions such as NOT to market a snow shovel in Ecuador.

Acquisition 9732

Acquisition focuses on getting a potential customer to use one's serviceor buy one's product in the most efficient way. This area hastraditionally focused on mass marketing and measuring a business' costper thousands of consumers reached. The classic example of acquisitionis Proctor & Gamble's use of daytime television dramas in the UnitedStates to sell soap, creating what is now called the soap opera. Othermethods of acquisition include direct mailings, telephone solicitation,toll free order numbers, and, more recently, Internet advertising andonline businesses.

Advertising

Capitalizing on the two-way interaction and an audience of the generalpublic, advertising is often utilized on applications deployed on theInternet. In a browser-based implementation, the use of frames orbanners creates the possibility to dedicate a section of the display toadvertising. With most of marketing capabilities, the advertising model(services) can vary from simple static advertisements to a robustadvertising integrated with the personalized system. The implementationmethods may range from an advertisement Applet to advertising servicesintegrated with the personalization system. Detailed below are possibleservices included in a complex advertising implementation.

Storage. Storage of the advertising content should be performed in thesame fashion as the product and electronic merchandising content. Thecontent should be so it integrates well with the personalizationservices and user profiles.

Integration with Personalization. Ideally, the personalization servicesare separated and can be utilized by multiple applications. Forpersonalized advertising, profile information will be gathered and theadvertising content filtered based on the profiles. A separate processwill handle the merging and delivery of the content as well as changingthe advertisements as the user navigates through the site. Theadvertising content may include rich content such as graphics and video.

Buy Now Services. Microsoft and others are currently working ontechnology to allow a user to click on the advertisement and purchasethe item without leaving the site. These technologies are emerging andmay require a client-side wallet to perform the transaction. The push isto provide the ability to quickly purchase items of interest withoutleaving the site of interest to make the purchase. Microsoft currentlyprovides this ability using an ActiveX control integrated with aMicrosoft wallet. Others are sure to follow this trend.

Usage Metering and Reconciliation. There are different methods forbilling for advertising space. The most common billing methods are usagewhich may include: the number of times displayed, the length the add isdisplayed or the number of users to which the ad is displayed. Servicesare needed to record the usage information in order to reconcile withthe advertisement providers. Since many sites are funded by ad revenue,the accuracy of these services is crucial.

As online advertising and its supporting technology matures, newadvertising methods will emerge. For example, the use of ‘intermercial’(sometimes referred to as interstitial—meaning intertwined) ads thatautomatically pop up between pages may prove to be the next method ofchoice. It is important to ensure the advertising services remainflexible and are able to address the evolving technology used toimplement advertising.

Retention 9736

Now that companies know it is cheaper to hang on to existing customersthan to find new ones, more and more emphasis is being placed oncustomer retention. Retention focuses on keeping customers for as longas possible. The most effective way to do this, is to provide excellentcustomer service at each and every interaction with the customer. Sinceelectronic business don't provide traditional customer service, it isimportant web-based businesses have sites with appropriate supportfunctionality. The support should be easy to use, and meet the specificneeds of that product's consumers.

Recommendation Services

Recommendation functions may take up multiple formats. The most commonformat are simple services to allow the site's users to provide directfeedback, positive or negative, and recommendations about the content orproducts on the site. By providing these services, the site may create acommunity where users can interact with each other, furthering thesite's worth. For example, a site could allow for users to submit bookreviews. The information is then available for consumption by thegeneral public. While the technology to implement this is rather simple,the process may prove to be a little more complex. The process includesreceiving input, reviewing recommendations, filtering and approvingcontent, and then posting the review or recommendations. The lack of afiltration or review process could be devastating to a site.

Another type of recommendation service makes suggestions to its userbase. These services can range from simple to complex. A more complexrecommendation service may utilize collaborative filtering.Collaborative filtering is the technique of using content or productratings from the site's user base to predict the interest otherpotential users will have in the content or products. Correlationalgorithms use the profile information, history, and/or inputpreferences to construct a correlation group of users whose ratings areeffective predictors for the new user. Prediction algorithms then usethe ratings and profile information of the users to make predictions ofthe content they most likely will find interesting. (Note: Thecollaborative filtering technique could be implemented within thepersonalization system.)

Site Announcements and Event Reminders

Additional relationship building techniques are site announcements andreminders. The underlying services are again personalized. The site hascreated content which may range from new product announcements based onthe customer's last visit or reminders of an upcoming event important tothe specific customer. For example, an event reminder could point out anupcoming wedding, personal anniversary or holiday. The user, oncereminded, may then utilize the site to act on the event. If the siteimplements complex event reminders, additional services may be needed toprovide calendar and scheduling functionality. These services may alsobe incorporated with the off-site subscription services to providereminders to users not logged into the site.

Loyalty and Return Customer Programs

Creating an environment that promotes customers to return to the site iscritical for the longevity of the site. Many of the seller-centricimplementations will utilize membership services and other incentiveprograms to try and promote customers to return. For example, sitemembers would receive discounts and additional privileges, thus buildinga better relationship with the site. Incentives like frequent shopperpoints or access to member only information are other common methods.The loyalty programs may require additional logic for permissions andcontent filtering. Most of this may be implemented by gathering andusing profiles and integration with a complex personalization system.

Return Programs are services geared toward enticing the customer toreturn to the site. The Internet eliminates two main factors affectingcustomer loyalty. The first is proximity. In the brick and mortarmedium, customers tend to shop (or browse) close to where they live orwork. The second factor is time or how long a store is open. With theInternet being 7 by 24 and geographically independent, these items areno longer relevant. For this reason, considerable effort may be gearedtoward creating return programs. The most common forms are electronicversion of current methods, although they may be more effective due topersonalization and real-time delivery.

Push and Off-Site Subscription Services

This section includes merchandising using email to push information to auser. (Note: Subscriptions to sites and information are covered in theOrder Processing—Fulfillment component.) Many of the common services forstorage, filtering, formatting and approving content would be utilized.Additional services would be needed to push the content to the desiredmailing list. Details and considerations for using push technology isincluded in application discussing the Netcentric Framework, referencedabove. Below are some basic services.

Subscription Management. Due to the Internet community frowning on junkemail and spamming, most sites have distributed their push marketingusing a subscription-oriented approach. Services should be provided toallow users to subscribe and un-subscribe from the site marketingdistributions.

Distribution Management. As the user base of the site grows, the actualdistribution mechanism needs to be robust enough to scale to handle thegrowing user base. Methods of distributing the information in a fashionthat does not impact the already increasing network traffic should beresearched.

Extension 9734

Extension asks businesses to answer the question. “How can one increasethe loyalty and profitability of this customer?”

Cross Selling and Up Selling

Cross Selling and Up Selling are similar to recommendation services.Cross selling uses some knowledge of the consumer to suggestcomplimentary or similar products in which the consumer may beinterested—“Would you like fries with that?” Up selling is an effort tosell more of the same thing, or a better version of what the consumermay currently be considering—“Would you like that Super Sized?”

Cross selling and up selling are considered an application or serviceenabled by complex personalization. Although very important from amarketing perspective, once the underlying services for complexpersonalization are in place, many of the demand generating applicationsare now possible. Cross selling or up selling could be implemented byproduct relationships in a database.

Maintenance and Administration 9008

FIG. 104 illustrates a flowchart for a method 10400 for administratingan e-Commerce system on a network. Operation of entities is monitored inoperation 10402. Entities include server processes, disk space, memoryavailability, CPU utilization, access time to a server, and/or a numberof connections in an e-Commerce system. In operation 10404, itemsincluding merchandising content, currency exchange rates, tax rates,and/or pricing in the e-Commerce system are updated at predeterminedintervals. In addition, external data stored separately from thee-Commerce system is synchronized in operation 10406 with internal datastored on the e-Commerce system. Contact information received from usersof the e-Commerce system is also managed in operation 10408. The itemsare altered based on profiles of the users of the e-Commerce system inoperation 10410.

One of the items altered based on the profiles of the users may includeprice, which may be altered to reflect a discount assigned to the user.A search may also be performed for the internal data in the e-Commercesystem prior to the synchronization of the external data.

As an option, load balancing services may also be performed thatinitiate and stop processes as utilization levels vary in the e-Commercesystem. As another option, managing of the contact information mayfurther include tracking responses to the users of the e-Commercesystem.

As with any system, a support, administration, and maintenance facilityand procedures need to be put in place to remain operational as well asefficient. In general, packaged implementations will only provideminimal maintenance and administration facilities leaving the bulk ofthe burden to the integrator. The underlying technology for thefacilities may be basic batch download/uploads, simple server processesand applications or even browser based. It is important to understandthe system administration and maintenance needs, develop a plan, andstick with it. Some of the areas to consider are listed below. FIG. 105illustrates high-level concepts of maintenance and administration of theframework.

System Monitoring Facilities 10500

The health of a system can be easily maintained by putting in placemonitoring facilities and procedures for capturing the system'selectronic vital signs. Far too often the users of a system are thefirst to know of system problems while the administrators are the lastto know. This can be prevented by creating automated monitoringfacilities for server processes, disk space, memory, CPU utilization,access time, number of connections, and other electronic vital signs.The complexity of these facilities is open for debate. In addition toonline monitoring facilities, robust logging, audit trails, andarchiving capabilities should be included. These will aid in analysisand forecasting of system needs.

System Administration

The term system administration is a vague term used to categorize theactions needed to support a system. This may include starting, stopping,or restarting servers or processes, scheduling backups and loads ofdatabases or files, recovery procedures or anything else needed tomaintain the system. Traditional system administration also includesupdates to system software, packages, and operating systems. Listedbelow are additional system administration considerations an eCommercesystem may encounter.

Merchandise Administration 10502

The merchandising aspect may introduce additional administration andmaintenance. Procedures should be put in place to handle sold outmerchandise and back order items. Updating merchandising content,currency, tax, and pricing may need to be performed on a regular basis.The merchandise administration facility should be able to handle pricingand discount items and have the ability to allow automatic updating andmanual override capabilities for authorized administrators.

Personalization Maintenance Facility 10504

The biggest challenges in personalization are determining matching rulesfor the business's market plans, categorization of the profiles,gathering profile information, and then developing robust content withadequate content indexing. Once these have been established, they shouldbe easily maintained. When designing the personalization services,maintenance of the rules and content should be considered. The peoplemost likely driving this information will not be technology oriented,and may require simple interfaces for altering rules for marketing,advertising, or other personalized content.

Content Administration

As content is added, this information will need to be indexed andintegrated with the search technology implemented at the site. Otheritems such as customer service chat discussions or review would alsoneed to be purged on a regular basis.

Data Administration 10506

Many times, utilizing packages to implement an eCommerce solution willintroduce a proprietary data model for customer and product information.In order to make this information accessible to the rest of theorganization, the information will need to be synchronized with theenterprise data. Services may be required to determine changes andsynchronize the data. This would be true for any information the sitegathers not integrated into the enterprise data.

Load Balancing

In addition to the monitoring and maintenance facilities, servicesshould be considered to stabilize performance. Providing the system isscalable, load balancing services would aid in initiating and stoppingextra processes as utilization levels vary. Processes could be startedto handle additional requests during peek periods providing the userwith a consistent level of performance. This is extremely important inperiods of peak usage. A good example is the fluctuation of the averageresponse times of some of the current electronic trading systems duringmarket surges. Times during a market surge were 2-3 minutes above theiraverage 6-10 second response time.

Contact Maintenance 10508

Internet users are quick to point out mistakes and opinions forimprovements. Sites will receive sporadic emails from users experiencinga variety of emotions about the site. Users may sour quickly if actionsare not taken or noted to items pointed out. Responses to user feedbackshould be monitored to ensure that each message from a user is respondedto in some manner.

Maintenance and Administration of the system is often wrongfullyoverlooked. It is a key component in improving customer satisfaction andbuilding customer relationships. Having robust maintenance andadministration facilities should increase the system's overall stabilityby reducing the time and cost to identify and fix issues, automatingprocesses, and enabling system administers.

Implementation Considerations

Information Staging

The ability to deliver new products and information may be critical tostay ahead or match the competition. The speed at which the informationcan be updated and migrated to production is critical. Be sure tounderstand the relationship between the content changes and the correctprocedures to migrate the changes to the production system. The abilityto maintain and grow the site may prove to be key factors in the site'ssuccess.

In most cases, a content staging process should be put in place. In thesimplest format, the procedures for modifying and adding content,testing, validation of content and subject matter, authorization andmigration to production should be documented.

Order Processing 1010

FIG. 106 illustrates the Order Processing portion 9010 of the eCommerceApplication Framework 9000. Subsections include Merchandise Selection10600, Check Out 10602, Payment 10604, and Fulfillment 10606.

FIG. 107 illustrates a flowchart for a method 10700 for completing atransaction over a network. Information is displayed information about aproduct for sale in operation 10702. Upon receiving an order forpurchase of the product in operation 10704, a price of the product forsale is dynamically generated in operation 10706 based on the actualprice of the product and discounts, taxes, fulfillment costs and/ordelivery costs. Save and recall of the product and price of the orderare also allowed in operation 10708. A method of payment is determinedin operation 10710. When payment is received, the order is fulfilled(see operations 10712 and 10714).

A medium for receiving the payment may be via credit based payment,debit based payment, and/or electronic cash. Additionally, verificationof export restrictions with respect to a selected product may also beallowed.

As an option, the ability to review, update, and cancel the order at anytime may be allowed. As another option, electronic rights may also bemanaged. In even a further option, order tracking information about astatus of the order may also be provided.

Allowing customers the ability to not just browse and interact butcomplete the purchased is crucial for a successful eCommerce solution.This section includes many of the capabilities needed to negotiate andperform the entire transaction. The transaction begins when the usertakes action to purchase the item(s). From a seller-centric view, thetransaction is initiated once the ‘purchase’ button is selected. The‘buy transaction’ may include sub-transactions such as totaling, paymentselection, inventory management and purchase authorization.

It is important to recognize some commerce packages specialize in thetransaction processing portion of an eCommerce solution. For example,Open Market's OM-Transact, does not provide a catalog interface or anyof the infrastructure for interaction with the potential customer.Instead, it will provide an interface for communicating with itstransactional infrastructure.

Each implementation will require specific flow and business logic. Thecommerce packages available today provide generic order processingbusiness capabilities that will need to be customized to achieve thespecific needs of the business. Illustrated in FIG. 108 is an exampleflow of business capabilities needed for complete order processing on aneCommerce implementation. The process begins with operation 10800 whichallows browsing and interacting in order to permit selection ofmerchandise in operation 10802. The process ends in operation 10804 withsettlement.

Merchandise Selection 10600

Some sort of merchandise collection facility is needed. All items ofinterest should be gathered and organized so they can be reviewed priorto purchase. The most common approaches are an order form or a metaphorsuch as a shopping cart or basket.

Shopping Cart Metaphor—The user is enabled to select items and add themto his online shopping cart. The items selected will be tracked. Theuser has the ability to add or remove items, review item details, andcheck out and total the items. In addition, the shopping cart shouldallow the user to exit and reenter the store without losing the items hehas selected.

Independent of the medium, the following capabilities should beconsidered:

Order list and information should be consistent with the merchandisingmechanism. If possible, display the merchandise in the same format so itis as appealing as when they order it.

The customer should be able to save and recall items, pricing, and otherorder details for the current and previous orders.

Allow for additional sales and impulse buying. The checkout process isideal for cross selling or any other form of impulse buying. Thesecapabilities should be integrated to the merchandise selection facility.

Allow for the ability to review, update or even cancel the order at anypoint of the selection purchasing flow. The customer should not feelconfined or forced to make the purchase.

Check Out 10602

The check out phase begins once the user has decided to purchase ororder the items gathered. A variety of capabilities may be required ormay affect this process. Listed below are some of the services toconsider during the check out processing.

Price Verification

Given the geographically independent environment and multitude ofpotential customer relationships, many factors may affect the actualpricing. The first step in the transaction is determining the price. Theprice in most cases will be dynamically generated based on the actualprice of the items, taxes, fulfillment or delivery costs, and any otheritem affecting the price. Ideally, product prices, shipping and handlingcharges and other charges should be maintained separately. Thisfunctionality should include the ability to handle tax-exempt customersand transactions. Sales tax and value added tax logging and auditingcapabilities should also be included.

Discounting

In general, pricing is calculated dynamically. Discounts may be appliedfor many reasons either to specific items or to the entire order.Additional discounts may be given for using a preferred paymentmechanism. Other implementations may provide discounts at the end ofmonth based on total sales.

Taxes and Tariffs

The tax issues related to the buying and selling of tangible personalproperty or services through the Internet, are numerous and complex.Questions include what products and services are subject to tax, whenand where to impose a tax on the retail transaction, and what tax (salesor use) the merchant is required to collect. Tax calculation functionswith an integrated sales tax or value-added tax (VAT) engine, able toperform real-time calculations based on customer-specified productcodes, order point of origin, shipper's address or recipient's addressshould be considered.

Due to these complexities, most solutions interface with a tax engine toreduce the risk and legalities involved with taxes. Most of the commercepackages available today interface with the leading tax engines.

Shipping Charges

Shipping charges may be applicable for items not fulfilled directly bythe site. In some cases, the customer's shipping location may be used todetermine their taxes and shipping charges. There are a variety ofmechanisms for determining shipping charges. They include:

-   -   Price Threshold—Shipping charges will vary according to set        price tiers.    -   Weight—Shipping charges may be determined based on gross        shipping weight.    -   Quantity—Charges may vary dependent on the quantity of items        ordered. Items may be free up to a given number or shipping may        be free after a given quantity.    -   Line Item—Designating a specific shipping charge for each line        item on the order.        Order Information

Other basic order information may be gathered during the check outprocessing. The most common method is an order form. The form should beeasily customizable and may contain a variety of information.

Order Form Standard online form with the usual questions: Name, Address,shipping location, credit card number, email address, etc. The userusually has the ability to submit or decline the order at this point.Submitted orders should be encrypted automatically by the commerceserver.

Customer Information (Establishing Customer Location.) If the basiccustomer information has not been gathered earlier in the process, itshould be gathered before the payment phase. For some implementations,customers may wish to remain anonymous, but this is rare.

Shipping/Billing Address Applications should be capable of supportingship-to addresses independent of and different from the bill-to address.This allows billing for a product or service to be sent to one location,and the actual product to be delivered to another.

Automated Inventory Management. In some cases, trading partners may setup Automatic Ordering based on usage or schedule. If inventory is usedon a regular basis, the re-ordering process may be automated.

Order Validation Inventory checks and verification of exportrestrictions can be done before the order is placed. Depending on whenand how the information is gathered this may be done anywhere along theprocess flow or as a background event concurrent with the otherprocesses.

Purchase Order Creation If the commerce implementation integrates withan existing system, it may need to generate unique purchase orders.Services to integrate and manage this functionality may be required.

Determine Payment Mechanism Interaction with the user may be requiredfor determining the payment mechanism. Research is currently underway todetermine if this may also be automated.

Payment 10604

After a total has been established, a payment method must be determined.A variety of mediums can handle the transfer of money. The methods,flow, technology, and potentially messaging, will vary byimplementation. Issues concerning security, liability, and relationshipto fulfillment need to be worked out.

Listed below are some considerations for determining the payment flowand mediums to be utilized.

Anonymity. If there is a need to allow the users to remain anonymous, ananonymous medium may need to be implemented. Implementations such as asilent bidding site may require strict standards and mediums foranonymity. In general, anonymity is not a concern for mostimplementations.

Monetary Transaction Size. If the site will be handling very small orvery large monetary transactions additional considerations will berequired. Sites accepting micro value transactions will need to plan aprocess to collect and verify the payment. To make low-valuetransactions cost effective, solutions may sacrifice security. In someimplementations, it is assumed “some” fraud will occur but in such smalldenominations as to be negligible.

Transaction Cost. Depending on the payment method, there are numerouspotential associated costs. Most mediums have either transaction costsor may involve a broker requiring additional fees. Understanding thecosts associated is important when planning an efficient payment system.

Audit Trail. Some implementations may record each transaction with aunique identifier used to track funds if necessary.

Security. In the past, eCommerce has been hampered by the absence ofsecure and robust transaction options. Recent development of secureonline payment options over the Internet have been a primary enabler.Strongly-encrypted online purchase transaction protocols have beendeveloped and integrated into software for consumers, merchants, andbanks to enable secure credit card transactions.

Consumer Type. The types of flow and payment medium will vary greatlydepending on the consumer or purchaser. B-C implementations requirepayment (or at least authorization) once the order is placed. For thebuyer-centric, trading partner relationship, the establishedinfrastructure may handle payments using traditional invoicing or anInternet-enabled form of EDI or EFT (Electronic Funds Transfer).

Electronic Authentication. Some sort of digital signature strategy wouldneed to be in place between trading partners and potentially thefinancial institution.

Message Standards. Payment instructions must be recognizable to allparties involved.

Payment Methods

There are a multitude of different vendors and technologies availablefor handling electronic payments. The infrastructure, process, andtechnology may vary dramatically from vendor to vendor. The actualmediums for the current payment options fall into these categories:

-   Credit-Based Payment. Today, the most widely-used electronic payment    option is the credit card. With the new transaction protocols and    security features, credit cards can be used on the Internet just as    they are in the real world. Consumer confidence is higher with the    already familiar standard. Current overhead for clearing, settlement    and fraud makes credit card based solutions uneconomical for    transactions of small dollar amounts.-   Debit-Based Payment. Payment utilizing this method will directly    debit and credit accounts. These may take the form of debit cards,    electronic checks or messages utilizing EDI or EFT.-   Electronic Cash. Electronic cash is the electronic equivalent of    real paper cash. It is usually implemented using public-key    cryptography, digital signatures and blind signatures. Electronic    cash is “digital” money on the computer's hard disk. Theoretically,    the money could be spent in very small increments, such as tenths of    a cent (U.S.) or less. In an electronic cash system there is usually    a bank, responsible for issuing currency, consumers that obtain cash    from either banks or brokers and merchants who will accept the    digital cash for goods and services. In short, the bank, merchant    and consumer each own a public and private key which is used to    encrypt and digitally sign the electronic cash.-   Smartcards. A smartcard is a programmable storage device the same in    size and appearance as a normal credit card. It contains a microchip    to store and process information. Some of these cards can contain    stored value in the form of digital coins. A lost card means lost    value, just like cash. The person holding the card can spend the    value stored on it at any merchant accepting smartcards. This    technology is particularly useful for online shopping, and is far    less vulnerable than systems storing value on a hard disk.    Transaction costs for this form of payment are very low, enabling    the user to conduct micro-transactions of one penny or less.    Microsoft and several computer manufacturers are pushing for    standards to incorporate smartcard readers into PC keyboards, and    most TV set-top Internet access devices already have them-   Digital Wallets. Digital wallet software facilitates secure, online    transactions between the consumer and the merchant, and between the    merchant and the bank. For the consumer, there will soon be    literally hundreds of software “digital wallets” available. They    will likely be free and similar in function, running within a web    browser.-   Payment Authorization. In many cases, consumer sites which implement    a credit card payment method will require payment authorization. In    some cases the actual settlement process can not occur until the    items are shipped.-   JEPI, being developed by W3C and CommerceNet in cooperation with    many large technology companies, is a standard mechanism for Web    clients and servers to find out what payment capabilities they have    in common, and negotiate the payment instrument, protocol, and    transport between one another. This will be transparent to the user;    they will simply be told by the wallet software what payment options    are available at this merchant (along with any available discounts    for payment type or membership affiliations), and asked to choose.    Fulfillment 10606

The fulfillment process can be complex and will vary depending on thetype of goods being delivered. Integration to existing systems as wellas communication of invoices and orders to distributors or tradingpartners will play an important role.

A tremendous amount of communication and back end processing will beneeded. Often implementing an eCommerce environment opens the doors toreview the underlying systems and processes. Potential areas includewarehouse notifications and P.O. delivery. Print, fax, or sneaker netsystems may be upgraded to EDI, email, or another electronic medium.Updating and improving these processes will be critical for providingcustomer support. Users will come to expect the ability to see theprogress of their order as it moves from the site to warehouse to theirdesktop.

Electronic Distribution

Soft goods may take the form of information, software, graphics, musicor any other digital content. Many traditional content providers haveimported their content to the Internet. Although the revenue generationis less than what they achieve through their traditional channels ofdistribution, publishers and other entertainment providers have foundthe Internet offers a richer, more interactive environment to presenttheir content. The Internet provides consumers the ability to search,evaluate, transact and personalize the content. The Internet willcontinue to be adopted as an effective distribution channel.

Site Subscription

A very simplistic form of soft goods fulfillment may be achieved byallowing the user access to the site. Functions to handle permissionsand access would be required to prevent unauthorized users or actions.

A site subscription may be based on different metering technologiesInternet metering technologies can be divided into two categories:observational metering and usage metering. Observation metering measuressite activity while usage metering measures the usage of items such asfiles, bytes or time.

Electronic Rights Management

Owners of digital content, including authors and publishers, have beensearching for a method to protect against the unauthorized distributionof their works over the Internet. Most content available on the Internettoday is freely distributed, often without consideration of the contentowner's copyrights and appropriate royalties. Protecting Web content isa difficult task. Items such as copyrighted words, images and other‘digital’ objects need to be protected from unauthorized (and endless)duplication. Currently, copyright notices can easily be stripped away.There are a few recent developments aimed at tracking rights violations.

Some rights management methods are geared toward identifying legal andillegal uses of a document or digital object. These concepts stillrequire actively searching the Web for signs of abuse. In essence, themethods still allow the content to be extracted and used, basing themajority of the security on trust. Other approaches place a ‘securitywrapper’ around the content so it can only be accessed by authorizedusers.

-   -   Digital Watermark—The most common method is to add a digital        ‘watermark’. The watermark is embedded in the background of the        image without changing the overall appearance of the image. An        agent, sometimes called a “spider” because of the way it crawls        the web, can be used to scan the Internet for the presence of        the image or identifier and report unauthorized URL's. The        watermark will stay with the image, even if it is downloaded.    -   Digital Object Identifier (DOI)—This method would associate a        unique identifier with the digital content. The identifier would        be permanently associated and could potentially be as low level        as a paragraph. The DOI concept is only a building block and        would still need to be incorporated into a rights management        system.    -   Digital Fingerprints—A digital fingerprint is an invisible        record of who “touched” an electronic document. Services would        be needed to determine who first misused the document (such as        by improperly copying or distributing it). Fingerprinting        electronic documents is content-dependent and is easiest for        document types with a large number of bits.    -   Secure Packaging—This concept prevents the use of the        information by placing the item in a logical security envelope.        The user may gain access to the information based on the        requirements of the security envelope. The security will allow        the user to see the abstract, price, rules for use, and other        pertinent information. Upon agreement of payment and/or rules by        the end user, the user will obtain a key to unlock the document        contained within the security envelope.        Customer Services 9012

FIG. 109 illustrates a flowchart for a method 10900 for electronicallyserving a customer over a network. An ability to search for informationon the network is provided via a site in operation 10902. Order trackinginformation for tracking an order is displayed via the site in operation10904. Return of a product is allowed via the site with a purchase pricerefunded to a customer in operation 10906. A training applicationprogram is executed in operation 10908 for training a customer in use ofthe site over the network. Interaction with the customer occurs inreal-time via the site by allowing the customer to communicate with acustomer service representative over the network in operation 10910.

The information capable of being searched may include productinformation and also a status of the order. Also, the customer maycommunicate with the customer service representative by way of a chatroom.

As an option, the purchase history information may also be compiled anddisplayed. As another option, information including policy documentationmay also be provided. As an additional option, an on-line bulletin boardmay be provided for allowing input from a plurality of customers.

This category includes any component of the solution meeting a user'sneed normally filled by a human customer service representative. Theseservices fall across the marketing, merchandising, order processing, andother categories. The customer service aspect of eCommerce is asimportant as selling the actual products. Just as in the world of thepaper bill, a lack of customer service, or poor customer service, candestroy any relationship the user has established with the electronicbusiness.

-   -   The business drivers for customer service are:        -   increased customer satisfaction        -   reduction of support personnel        -   increased functionality        -   timely information and service

Conducting commerce on the Internet means allowing direct access to thesystem and its data. New users may have a much lower tolerance for hardto understand interfaces and site layout and may require considerablehelp understanding what information exists on the site and how to findit. Customer service will continue to be a key component in maintainingcustomer relationships.

There are a variety of different services to enhance customer service.Which services should be implemented are dependent on the goals andcharacteristics of the site. Below are listed the key customer services,which are also found in FIG. 110.

Site Search 11000

Search engines have become a popular component of anyinformation-intensive site. The ability to lead a user to the type ofinformation he is looking for will not only make the interaction moreefficient but enhance the customer relationships. “Search” is a genericterm and may be used for searching for a specific product or may beimplemented to search for a specific customer's order or otherinformation.

Order Tracking (Order Management) 11002

Providing customers the ability to track their orders can providetremendous benefits in reduction of support personnel and buildingcustomer relationships. Applications of this nature can range fromsimple to complex depending on the level of detail. The order trackingsystem should be integrated within the order processing's innateworkflow system. Purchase history functions may also be provided.

Return Merchandise/Credit 11004

If the site sells goods, there is always the possibility of the customerreturning the merchandise. As with most exception processing, this cancreate numerous problems, though the return should be allowed. Actuallycrediting a-smartcard or replacing digital currency may be verydifficult. The legalities and procedures should be thought out anddocumentation provided.

Help & Information 11006 and Troubleshooting 11008

There is a tremendous amount of help and information features a site mayprovide. Listed below are some of the more common examples.

-   -   Policy Documents—Documentation stating the policies of the site.        In some cases this is required for legal reasons. In general it        is important to layout the site's policies and procedures.        -   Email/Comments/Contact Merchant—Providing mechanisms where            the user can easily contact the site is a good practice.            Valuable input and comments can be gained from the actual            users. Some implementations may allow users to rate site            content. This functionality can be thought of as a virtual            suggestion box.        -   Online Help and Training (Site navigation)—Whether the site            is Intranet or Internet, the users should have the ability            to gain help on navigation and usage of the site. In more            robust cases, interactive training may be offered if it will            improve site performance and utilization.        -   Store Locator—Many customers may use a site for pricing and            product research and may not be comfortable purchasing items            over an electronic medium. If the site has brick and mortar            store locations, provide a facility for the tentative            consumer to find them.        -   Trouble Help Desk—Most help desk functions can be provided            through a web site. These services can range from simple            documents, such as trouble shouting guides and FAQs, to            complex applications.            Collaboration Services

Behind security, one of the leading reasons a customer will not‘transact’ online is the lack of human contact. Although unbelievable tomost technologists, there is still an underlying fear of computershidden in a large percentage of the potential consumer base. Currently,most seller-centric sites do not provide a truly two-way, interactive,or collaborative environment. The site may have a complex form ofpersonalization which will filter and deliver content geared to thespecific user, but in most cases will not provide real-time customerinteraction. Interaction may be delivered in the following methods:

-   -   Customer Service Chat—Service provided to interact directly with        the customers through the site. In the simplest form this may be        a real time, textual chat function letting hesitant shoppers ask        questions to either a service or sales representative.        Technology and bandwidth considerations would have to be        reviewed before audio or video type solutions could be        considered.    -   Community—An online community of interest for customers. The        purpose of a community is to build an interest in the site so        the customers will return simply to interact and gain        information (and potentially purchase items). This may include        additional information about the products or industry not        normally included in the traditional merchandising approach.    -   For additional detail on collaboration services, please refer to        the Collaboration Delivery Vehicle in DAF, found above.        Security 9014

FIG. 111 illustrates the Security component 9014 of the eCommerceApplication Framework in accordance with one embodiment of the presentinvention. Its various subcomponents are discussed below.

FIG. 112 illustrates a flowchart for a method 11200 for ensuringsecurity of an e-Commerce system on a network. In operation 11202, amessage digest is attached to data prior to a transmission fordetermining whether the data was modified after being sent by a user.The data is also encrypted in operation 11204 for preventingunauthorized access to the data during the transmission. Authenticationinformation is sent with the data in the transmission fir verifying anidentity of the user m operation 11206. A client environment is securedby using authorization models to determine which entities can accessspecific applications, data, and resources on a client in operation11208. A server environment is secured by implementing a firewall inoperation 11210.

The message digest may include a log of times when modifications to thedata occurred. The authentication information may also include a digitalsignature. In addition, the authentication information may furtherinclude a certification. Further, the certification may include a useridentifier, a service identifier, a public key which is used to verifythe digital signature, a name of an issuer of the certification, aperiod which the certification is valid, and an email address.

In the last few years, computer crimes have exploded—hackers havedefaced the web site of the CIA, stolen information and software fromNASA and the Pentagon, and made unauthorized wire transfers causingbanks to lose millions. According to WarRoom Research, financial lossesfrom computer crime run at $10 billion a year. Historically, 80% ofsecurity problems have been internal ones—either from employeesexceeding their level of authorization or ones that are disgruntled.Netcentric computing and eCommerce are increasing the risks due torapidly evolving technology infrastructures. As access to corporatesystems is extended virtually and new security holes are discovereddaily, security issues become complex.

eCommerce, while providing immense potential business advantages, mayalso expose businesses to significant risks. If their systems are brokeninto, they are at risk to financial loss, embarrassment, lost customers,and potential legal liability. Businesses often hesitate to takeadvantage of eCommerce because they fear security problems. Althoughsecurity technologies are continually evolving to mitigate theseeCommerce security risks, security breeches occur because businessesfail to implement an appropriate mixture of security solutions.

The problems associated with connecting the network to the vast Internetare widely published. Hackers abound, and new methods for compromisingnetworks are published almost daily. However, what about connecting thenetwork to a partner for project collaboration, or perhaps a supplierfor automatic inventory control? One might trust their supplier,however, does one really know how well their network is secure?Contracts and Service Levels can and should deal with many of theseissues, however, technology can also be used to enforce securitypolicies.

Once the correct mixture of security solutions has been implemented, thecompany will experience many benefits besides peace of mind that theirsite is secure. Security also allows people to conduct businessfunctions over the Internet which previously could only be done inperson or with a more private connection. This allows expansion into newmarkets and new business capabilities, increases efficiency, and reducesthe cost of doing business. For example, in the typical electronicstorefront scenario, security is enabling an unknown buyer and seller toexchange goods with a reasonable assurance that the transaction will behonored on both ends. Security can also be a selling point for acompany's eCommerce services. By demonstrating an increased level oftrust and reduced exposure to fraud, a customer may choose onemerchant's services over another's. Furthermore, eCommerce technologiesrely on electronic automated security rather than imprecise proceduralsecurity. This can result in more reliable processing and fewer errors.

Unless customers and users feel the system is secure and there is littleto no risk involved with using the system, the implementation will notbe successful. Depending on the system, the amount of security in thedifferent security areas will vary. By securing all aspects of the site,it will make it extremely difficult for an intruder to work their wayinto the system without being detected. There are a number of differentapproaches which can be employed to provide system security. Among themost common, are firewalling, encryption, and authentication. Eachprovides a particular type and degree of security, and in many instancesit makes sense to use multiple technologies together to achieve thedesired result. Security must be built into a system extremely carefullyin order to be effective.

The details of security in eCommerce will be discussed in terms of fiveeCommerce cross-component application types. The five application typesdiscussed are:

-   -   Advertise Product Online    -   Collaboration    -   Interactive Customer Service    -   Internet Home Banking    -   Online Storefront/Product Sales

FIGS. 113-122 illustrate these five application types. The Figures aregrouped in consecutive pairs in which a sample architecture will beshown in a first Figure and the following Figure will be a securityarchitecture that may or may not be created by modifying the immediatelyprevious sample architecture. The organization of the pairs of Figuresis as follows: FIGS. 113-114, 115-116, 117-118, 119-120, 121-122.

Secure Communication 11100.

Visa® and MasterCard® have jointly developed the Secure ElectronicTransaction (SET) protocol to allow secure, cost-effective bank-cardtransactions over open networks. SET includes facilities for:

-   -   Purchasing goods and services electronically    -   Requesting payment authorization    -   Requesting certificates for authentication

Consumers get their encryption keys using a specific program integratedinto their browser. This program automatically converts a consumer'scredit card number into a certificate given by Visa or MasterCard. Thiscertificate contains a key and will be attached permanently to thebrowser of the consumer.

Then, for every transaction the consumer asks the merchant to send hiscertificate, and the merchant can ask the consumer's bank forauthentication with the customer's certificate.

Full implementation of SET requires certificates be issued for eachcredit card a consumer wishes to use on the Internet. This raisesenormous administrative challenges, as well as the problems involved inachieving this level of universal adoption.

Secure Environment 11102

There are different technical approaches for Internet security. The endgoal of the security technologies is the same. It is important to payattention to the approach and questions that they try to answer. Forexample Secure Socket Layer (SSL) and Secure HTTP (SHTTP) have beenviewed as competing technology. SSL uses the TCP/IIP protocol to providetransaction security at the transport level. Security properties arelinked to the channel of communication between the two parties. Theissue they are addressing is channel privacy for a conversation ortransaction. SHTTP provides transaction security at the document level.Each document is designated as private by the sender. This approach isaddressing the question of authentication and authorization of webtransactions.

Secure Data 11104

The first area to secure is data. It has to be ensured information isprotected from unauthorized access. This is mostly important whensensitive data, such as credit card numbers or business figures, aretransmitted. Data usually passes a long way before reaching its finaldestination and can easily be read by a third party. Data, therefore,has to be encrypted before transmission. Today several encryptiontechniques are used which ensure the data is unusable if intercepted.

In addition to encrypting the data, the parties involved in anelectronic transaction need to know that the data received or sent issecure. Authentication techniques require the identities of the senderand receiver are known and the information sent arrives unaltered.Authentication can be accomplished with both the use of a message digestand a digital signature. Details on some of these techniques arediscussed below.

Cryptography

Cryptography is an essential component in securing data. In the mostbasic sense, cryptography is encrypting and decrypting data using analgorithm(s) or key of some sort. Encrypted data is useless without thekey to decrypt it. Today several encryption standards exist utilizing awide variety of algorithms and keys. Details on some of the differentmethods can be found in the Security for Internet Electronic CommerceSecurity Technology Handbook.

Message Digest

A message digest is used to make sure no one has altered the messagebetween transmission and reception. It is used to providedata-integrity. A digest is associated with a sent message. Therecipient can re-compute the digest and compare the new one with thesent one. If they match, the message has not been tampered duringtransmission. The algorithm used to compute digest must be the same forthe sender and the recipient. A message digest is a short, fixed-lengthdigital code derived in a one-way fashion from a longer variable-lengthmessage. As a result, it is impossible to determine the original messageon the basis of the digest or to find a different message with the samedigest.

Digital Signature

Digital signatures ensure the message recipient only the sender of themessage could have sent it. The sender signs a message by encrypting adigest of the message with their private key. No one but the particularsender could have generated the digest corresponding to the message.This provides authentication of the sender as well as non-repudiation ofthe origin. Encrypting a message digest also links the signature withthe message content. The sender can't claim they did not send themessage or the message is not the one they sent.

Certification

Some security techniques may require the use of a public key forencrypting data. When using a public keys, issues may arise with keymanagement and verification. Often a trusted third party will be neededto issue a Certification Authority (CA) for keys and signatures.Certification Authority declares which public key and signatures belongsto which users and services. Because a user needs the CA public key tocheck validity of certificates, CA must provide a way to safely deliverits own public key.

-   -   A certificate typically contains:        -   User and service identifier        -   Actual public keys        -   A public key, which can be used to verify the digital            signature of a message sender        -   The name of the issuer, or Certification Authority        -   The certificate's validity period        -   Other identifying information such as email address            Secure Client Environment 11106

The client environment should also be secured. Since systems may be opento public use, and accessible to a large audience, it could be subjectto new types of attacks. An environment must have security mechanisms inplace to control who can access it as well as controls on the actionsthese users may perform. This may be achieved using authorizationmodels. Authorization models are used to determine which entities (forexample, people or applications) can access specific applications, data,or resources.

With the onset on Netcentric computing, entire applications or otherforms of executable content may be downloaded across a network. Thisstyle of computing introduces a variety of security concerns. Downloadsmay come in the form of applications, applets, ActiveX controls, scriptsand a variety of other software. It is important to understand thedifferent security concerns with the downloads.

Java Applets

Java is designed for developing programs to nm on many different kindsof computers connected together in a network. A Java Applet is a specialkind of Java program attached to a Web page. Applets are embedded into aWeb page's HTML definition and interpreted by Java-enabled browser. Itis possible to have users download the applet from the Web and run theprogram locally.

Running some unknown person's untrusted code is also inherentlydangerous. For this reason, Java restricts the behavior of Applets to aset of safe actions (Safe applets are labeled as trusted applets). TheJava security model restricts an Applet as follows:

-   -   Applets cannot make direct system calls    -   Applets are forbidden to:        -   access the file system        -   open sockets (except on the originating server)        -   interfere with other applets        -   spy on the local environment

Because of its built-in security model, Java addresses these riskshead-on. Unfortunately, there are still holes in Java's security modelwhich allow some risks. For example, applets could be created to performvarious harmful acts:

-   -   Denial of service; This kind of hostile applet takes all the        available system resources of the user's machine        -   Invasion of privacy; These Applets can publicize private            information.        -   Annoyance; These types of Applets play sound files, display            graphics, or create endless windows.            ActiveX

ActiveX is a technology developed by the Microsoft Corporation fordistributing software over the Internet. Like Java Applets, an ActiveX“control” can be embedded in a Web page, where it typically appears as asmart interactive graphic. Unlike Java, which is a platform-independentprogramming language, ActiveX controls are distributed as executablebinaries, and must be separately compiled for each target machine andoperating system.

The ActiveX security model is considerably different from Java Applets.ActiveX places no restrictions on what a control can do. Instead, eachActiveX control can be digitally “signed” by its author in such a waythat the signature cannot be altered or repudiated. The digitalsignatures can then be certified by a trusted “certifying authority”,such as VeriSign, to create the equivalent of a shrink-wrapped softwarepackage. If downloading a signed ActiveX control causes a machine tocrash, the responsible party will be identifiable.

This security model places the responsibility for the computer system'ssecurity on the user. Before the browser downloads an ActiveX controlthat has not been signed at all, or has been signed but certified by anunknown certifying authority, the browser presents a dialog box warningthe user this action may not be safe. The user can abort the transfer,or may continue the transfer and take his chances.

Scripting Languages

Internet scripting languages are programming languages embedded in HTMLpages and are interpreted by the user's browser (for example. NetscapeNavigator or Microsoft Explorer). Typically, they are dedicated tocontrol the user's interaction with an HTML document, for example when:

-   -   Processing mouse events    -   Opening new windows    -   Checking forms    -   Interacting with other active content

As scripts are pieces of code from a foreign source executed on the usersystem, they raise security issues. Indeed, a user must be sure adownloaded script will not perform malicious actions against his system.Scripting languages designers have to manage the balance betweensecurity achieved through restriction, and language capabilities.

Secure Server Environment 11108

Securing the server environment will depend upon the technology andarchitecture of the implementation. Techniques and security models existfor the different methods of server-side computing. Included below isbasic security information for some of the different technologies.

Internet Firewall

A firewall is used to protect a trusted network from an untrustednetwork. Typically, the two networks in question are an organization'sinternal network (trusted) and the Internet (untrusted). A firewall is asystem or group of systems that enforces an access control policybetween two networks. A firewall is a collection of components or asystem placed between two networks and possesses the followingproperties:

-   -   All traffic from inside to outside, and vice-versa, must pass        through it;    -   Only authorized traffic, as defined by the local security        policy, is allowed to pass through it;    -   The system itself is immune to penetration.        Common Gateway Interface (CGI)

Common Gateway Interface (CGI) scripts are a way of processinginformation submitted to the web server using a form. A CGI script canbe written in any language able to use standard IN and OUT streams(usually Perl or C shell). To process a form, the client first submitsthe information content to the server. On the server, a CGI script readsthe form contents, then uses it to write a new HTML page, which is sentback from the server to the client. Security problems with CGI scriptsoccur on both the client and the server sides.

CGI Client Side

Submitting a form to a CGI script, which is located on a server, impliesthe sending of the contents of this form over the Network. If thechannel used is not safe, form content can easily be read and perverted.Any way of securing the channel, such as SSL, PCT, or S-HTTP, can beused to achieve confidentiality of submitted information. As theseprotocols must be implemented by both client and server, a user mustcheck the server is able to secure the channel. Current popular browsersare able to warn the user if information is being submitted in an unsafefashion.

CGI Server Side

Processing a form on the server, using server resources, such as systemcommands, can lead to security holes. Indeed, forms can be full ofmalicious content causing the server to perform confidential informationdelivery, server crashes, or unauthorized accesses.

The only way to protect a server from attacks through CGI script is tobe very careful when writing, testing, and using CGI scripts. As far aspossible, CGI scripts should avoid executing system commands. Eachsubmitting entry should be checked and analyzed before being processed.Script sources must be hidden as analyzing the source of a script is thebest way to find an efficient attack through it. On multiple usersystems, the right to install CGI scripts should only be granted to theadministrator or trustworthy users.

Common Object Request Broker (CORBA)

The Common Object Request Broker architecture is an open distributedobject computing infrastructure standardized by the Object ManagementGroup. CORBA specifies the interfaces, structures and policies used bydistributed objects (components) to communicate independently of thelanguage, operating systems, machine, or network.

The CORBA 2.0 specification presents a good set of security policieswhich provide authentication, data integrity, confidentiality andnon-repudiation. The standard leaves to the applications the problem ofhandling the non-repudiation policies without conforming to the ISOspecifications. The standard does not thoroughly solve the problem ofinteroperability between different security domains.

Distributed Component Object Model (DCOM)

The Microsoft Component Object Model (COM) provides a model based onObject Technology, to manage inter-process communication on a localcomputer. Microsoft's Distributed Component Object Model is an extensionof COM, supporting the distribution of collaborative processes over anetwork.

Security issues in DCOM concern:

-   Security for communication; Inter-process communication messages are    sent on potentially unsecured networks like the Internet.-   System administration considerations; Using a DCOM-aware application    involves the possibility for a user to manage processes on others    systems. This must not conflict with the user's rights on each    system.    Remote Method Invocation (RMI)

The Remote Method Invocation allows a programmer to create distributedJava-to-Java applications. This allows remote Java objects to be invokedfrom other Java virtual machines, even those on different hosts. A Javaprogram can call a remote object only when it has obtained a referenceto that remote object. This can be done by:

-   Searching for the remote object using the bootstrap naming service    provided by RMI.-   Receiving the reference as an argument or a return value.

A client can call a remote object on a server, and that server can alsoact as a client when calling other remote objects. As RMI both impliesexecution of foreign code and communication over a network, deployingRMI requires a secured environment so and secured communication.

The RMI specification does not define any security features fordistributed transactions. In order to secure the transfer of informationbetween hosts located in different address spaces, some securityfeatures need to be added to the specification.

Advertise Products Online

In the sample architecture shown in FIG. 113, a potential customer 11300will access a corporate web site for some sales information. This is aninformation source only, no transactions (exchanges of value) can beperformed. Internet users will surf to the advertising site, and clickon various links within the page to get more information on particularproducts. The web server can make requests from the application serverto serve dynamic pages to the user. The application server can pullinformation from the database if detailed product information isrequested. Site administrators develop content on the development serverand test it on the staging server.

Functional Description

Customer launches a web browser and goes to the retail venue's web site.

With a cookie, the retailer's application server 11302 can identify thecustomer and choose a merchant to display on the front page. In additionit can tailor the merchant's interactive catalog of products tohighlight those products which would be of interest to the customer

Customer selects items and gets a detailed description of the itemincluding its price and nearest store location or a phone number toorder online.

Security Business Priorities

-   -   Preventing the web site from being vandalized    -   Assuring the web site is available to potential customers at all        times    -   Public perception that the company and web site Is providing        proper and effective security

An exemplary security architecture is illustrated in FIG. 114. Thisarchitecture is superior to the architecture of FIG. 113.

Security Technical Description

Encryption services are not implemented in this architecture because noconfidential information is sent between the customer 11400 and the website.

Authentication services are provided at the company's web server 11402with a server side certificate 11404 signed by a leading CA provider.Customers are not authenticated. Internal users (i.e. administrators)are authenticated with their NT domain logon.

Access control is provided by a firewall 11406 at the entry point intothe company's internal network. A packet filter router 11408 is locatedbefore the web resources to limit traffic to HTTP only. In addition allsensitive servers in the architecture (firewall, web, application,database) have hardened operating systems implemented either with aspecific secure server or an add on software package.

Auditing services are provided in real time with Intrusion DetectionModules (IDM) 11410 on all critical services. Off line auditing isprovided with operating system security scanning tools to identifyvulnerabilities.

Implementation Considerations

Separation of duties is necessary to assure proper controls are bothimplemented and monitored. Security administration (adding/deletingusers, updating system configurations, etc.) should be performed by adifferent person than security auditing (review of logs, running OSsecurity scans, etc.)

A security policy is necessary to provide direction on what assetsshould be secured and what threats are of most concern.

Security standards are necessary to assure a consistent, secureconfiguration across multiple platforms and applications.

Administration procedures should be developed and implemented thatclearly outline the procedures administrators must follow for useradministration and system/security administration. Appropriateguidelines should be included with each procedure on the time requiredto perform it, and that time should be agreed to by the administratorand their manager.

Testing procedures and guidelines should be created for developing andmaintaining application code and architecture configuration.

Training programs should be outlined for those individuals fulfillingsecurity roles in the architecture. User training information shouldalso be developed and distributed in an easy to read and implementmanner. Special attention should be paid to the legal requirements forany disclaimer or policy statements which must be presented to thecustomer when accessing the site.

Collaboration

In the sample architecture shown in FIG. 115, a silicon chip designerwishes to have direct network access to several of their customers 11500in order to share specifications, distribute engineering designs, andcollaborate on works in progress. Corporate employees from headquarters11502, local offices 11504, or from a remote location 11506 can accessinformation stored on the web server or the back end database server.Employees also have the ability to access the simulation applicationwhich is web enabled. Customers may access design information that isposted on the web server, but cannot access back end systems. Thecustomer may also post information on their own web server or databaseserver to provide detailed specifications or information to the chipmanufacturer.

Security Business Priorities

Protecting sensitive resources on the internal network from unauthorizedexternal access

Protecting customer design information from access by hackers orcompetitors

Allowing a customer to access only their own information, not anothercustomer's information

Assuring design information maintains proper integrity

FIG. 116 depicts another exemplary Security Architecture which issuperior to the security architecture of FIG. 115.

Security Technical Description

Encryption services are provided in the security architecture of FIG.116 with Virtual Private Networking (VPN). The central corporatefirewall 11600 has a server VPN module 11602, and all remote customerlocations are required to implement a VPN module on their firewall 11604as well. Remote users 11606 will need client VPN software installed ontheir PCs. Remote users should also implement a local encryptingapplication that will encrypt the contents of sensitive directories ontheir hard drive.

Authentication services are provided to users at customer locations withdigital certificates. The central corporate headquarters will maintain aCA (Certificate Authority) to administer the certificates. The CA isintegrated with an LDAP server to store directory information. An RA(Registration Authority) is used to process certificate requests. Forusers at customer locations, the authentication occurs at the corporateweb server and is managed by the web server access control software.Stronger authentication is required for remote users because they haveincreased access in the internal network. Remote users therefore will beissued smart cards on which they will store their private key. Eachremote user will need a smart card reader for their PC.

Access control is provided by firewalls at entry points into both thecorporate headquarters network and the customer location. A secondaryfirewall is located behind the web server at corporate headquarters tofurther restrict access to more sensitive servers on the internalnetwork. An access control software package 11608 is used on the webservers to restrict access to specific web pages, files, anddirectories. In addition, all sensitive servers at corporateheadquarters (database, ftp, application, firewall, web) have hardenedoperating systems implemented either with a specific secure server or anadd on software package.

Integrity is provided with digital fingerprint technology at the ftpserver. As a user downloads a file to their PC, it is stamped with adigital fingerprint which uniquely identifies the time and the user thatdownloaded that file.

Auditing services are provided in real time with Intrusion DetectionModules (IDM) on all critical services. Off line auditing is providedwith operating system security scanning tools to identifyvulnerabilities.

Implementation Considerations

Separation of duties is necessary to assure proper controls are bothimplemented and monitored. Security administration (adding/deletingusers, updating system configurations, etc.) should be performed by adifferent person than security auditing (review of logs, running OSsecurity scans, etc.)

A security policy is necessary to provide direction on what assetsshould be secured and what threats are of most concern.

Security standards are necessary to assure a consistent, secureconfiguration across multiple platforms and applications.

Administration procedures should be developed and implemented thatclearly outline the procedures administrators must follow for useradministration and system/security administration. Appropriateguidelines should be included with each procedure on the time requiredto perform it, and that time should be agreed to by the administratorand their manager.

Testing procedures and guidelines should be created for developing andmaintaining application code and architecture configuration.

Training programs should be outlined for those individuals fulfillingsecurity roles in the architecture. User training information shouldalso be developed and distributed in an easy to read and implementmanner.

Interactive Customer Service

In the sample architecture shown in FIG. 117, customers 11700 of asoftware vendor are able to access the vendor's web site and attempt tosolve their technical problems without directly burdening the vendorcustomer support personnel. If an answer is not found, the customer cansend an email to the support organization, which can be responded to bya support representative. This architecture serves three differentapplications: 1) a customer client application, which produces a webinterface for accessing personalized and product specific online helpresources, including email, chat rooms, news groups, and full textsearches, 2) a customer support representative application which can beused to respond to a client user's request via email, chat, or news, and3) an administration application which enables the corporate web masterto easily change the look and feel of the support site for a company.

Functional Description

Customer launches a web browser and goes to the company's web site andclicks on customer service

Web page has a menu of options including online technical support, chatroom and upgrades/patches.

Online technical support consists of the ability to email a technicalsupport representative and get a reply by email or access an interactivedatabase 11702 of problems and solutions.

When the user clicks on the interactive support he will be asked aseries of questions to pinpoint the problem.

Another option at this point is for the user to enter the serial numberof the product and for the web server to customize the help page basedon what product the user has.

If the user is not satisfied with the help he receives there is a chatroom and or newsgroup to talk to a live customer support representativeand other customers.

Security Business Priorities

Public perception that the company and web site is providing proper andeffective security

Protecting access to any information on the internal network,specifically customer-related information

Protecting the integrity of their web site and ensuring that it is notvandalized

An exemplary security architecture is illustrated in FIG. 118. Thisarchitecture provides more security than the architecture of FIG. 117.

Security Technical Description

Encryption services are not implemented in this architecture because noconfidential information is sent between the customer 11800 and the website.

Authentication services are provided at the company's web server 11802with a server side certificate signed by a leading CA provider.Customers are not authenticated. Internal users (i.e. administrators)are authenticated with their NT domain logon.

Access control is provided by a firewall 11804 at the entry point intothe company's internal network. A packet filter router 11806 is locatedbefore the web resources to limit traffic to HTTP and NNTP only. Inaddition all sensitive servers in the architecture (firewall, web,personalization, news, chat, email) have hardened operating systemsimplemented either with a specific secure server or an add on softwarepackage.

Auditing services are provided in real time with Intrusion DetectionModules (IDM) 11808 on all critical services. Off line auditing isprovided with operating system security scanning tools to identifyvulnerabilities.

Content filtering is provided at the chat server and the news server insoftware. This software will filter posted content based on apre-defined rule base to prohibit inappropriate material.

Implementation Considerations

Separation of duties is necessary to assure proper controls are bothimplemented and monitored. Security administration (adding/deletingusers, updating system configurations, etc.) should be performed by adifferent person than security auditing (review of logs, running OSsecurity scans, etc.)

A security policy is necessary to provide direction on what assetsshould be secured and what threats are of most concern.

Security standards are necessary to assure a consistent, secureconfiguration across multiple platforms and applications.

Administration procedures should be developed and implemented thatclearly outline the procedures administrators must follow for useradministration and system/security administration. Appropriateguidelines should be included with each procedure on the time requiredto perform it, and that time should be agreed to by the administratorand their manager.

Testing procedures and guidelines should be created for developing andmaintaining application code and architecture configuration.

Training programs should be outlined for those individual fulfillingsecurity roles in the architecture. User training information shouldalso be developed and distributed in an easy to read and implementmanner. Special attention should be paid to the legal requirements forany disclaimer or policy statements which must be presented to thecustomer when accessing the service.

Internet Home Banking

FIG. 119 illustrates an exemplary architecture. In this samplearchitecture, customers 11900 are provided with the capability to accessaccount information, pay bills, order checks, and transfer funds betweentheir multiple accounts. The customer will use a PC to dial their ISP11902 and access the bank's web site. The client PC will be equippedwith standard HTML browser software, and HTTP communications capabilityfor connectivity to the server 11904 at the bank. An encrypted sessionis established between the client and the server using SSLv3. Once aconnection is established, the customer can request a service from thebank's web site. This request consists of the recall of an ASP or HTMLpage, using a secure SSL3/PCT session over TCP/IP.

Upon arrival of the request at the web server, VB Scripts or JScriptsare run as requested in the Active Server Pages. These scripts interactwith OLE/COM objects which reside on the application server. Theseobjects run application services to handle the information requested bythe user. The application services are in turn handled by transactionservices, which control object operations and data transactions on localand remote databases. The answer to the request is then sent back to theclient where it is translated from ASP to HTML, or handled by ActiveX.

Functional Description

Customer launches a web browser and goes to the bank's web site.

The encryption server creates a secure SSL session and requests a loginname and password.

Authentication is passed to the application server and verified.

The main page provides user with different options such as accountinformation, funds transfer, bill payments, portfolio management and aloan service center.

Customer wants to pay bills but first clicks on account information tocheck his balance.

The web server requests the account information from the applicationserver which accesses the mainframe for the data.

Account information including balance, recent deposits and clearedchecks are returned to the web server and displayed on the user'scomputer.

User decides to pay bills and clicks on bill payment

User enters the name of the payee and the application server queries themainframe for the payee's address and information about previous checkswritten to this payee by the user.

User enters an amount and the date it should be paid.

Data is transferred to the application server and executed on theassigned date.

Money is then transferred out of the user's account and cleared with thepayee's bank through the banks clearing house.

User logs out and the SSL session ends.

Security Business Priorities

Public perception that the company and web site is secure and theirmoney is safe

Protecting access to any financial information on the internal network,specifically account and customer information

Preventing major financial losses involving multiple customer accounts

FIG. 120 depicts another exemplary Security Architecture which issuperior to the security architecture of FIG. 119.

Security Technical Description

Encryption services are provided between the client 12000 and the server12002 with SSLv3 using 128 bit session keys. The encrypted session isbetween the client PC and the encryption server 12004. Note that thisrequires clients to have browsers which support SSLv3.

Authentication services are provided with digital certificates.Customers will be issued personal digital certificates 12006, signed bythe root key for the bank. The encryption server will have a server sidecertificate signed by a leading PKI provider. Certificate managementservices will be outsourced, so that the bank will approve and denycertificate requests at the RA (Registration Authority), but certificaterevocation and management services will be provided by a PKI servicevendor 12008.

Access control is provided by a firewall 12010 at the entry point intothe bank's network. A packet filter router is placed in front of thefirewall server, and a choke router is placed behind the firewall inorder to provide some redundancy at this critical juncture. The firewallshould implement Network Address Translation (NAT) to protectconfiguration information of the bank's internal network. Customerprofiles which limit customer's access to the application and themainframe are maintained on a database off of the application server.Users are given unique IDs and privileges to access the application andthe mainframe. In addition all sensitive servers at the bank (firewall,encryption, application, web) have hardened operating systemsimplemented either with a specific secure server or an add on softwarepackage.

Integrity is provided with digital signatures on the transactionmessages sent from the client PC to the application server.

Auditing services are provided in real time with Intrusion DetectionModules (IDM) on all critical services. Off line auditing is providedwith operating system security scanning tools to identityvulnerabilities. In addition, a single transaction ID is logged at eachpoint in the architecture to provide the ability to trace a singletransaction through multiple audit logs.

Implementation Considerations

Separation of duties is necessary to assure proper controls are bothimplemented and monitored. Security administration (adding/deletingusers, updating system configurations, etc.) should be performed by adifferent person than security auditing (review of logs, running OSsecurity scans, etc.)

A security policy is necessary to provide direction on what assetsshould be secured and what threats are of most concern.

Security standards are necessary to assure a consistent, secureconfiguration across multiple platforms and applications.

Administration procedures should be developed and implemented thatclearly outline the procedures administrators must follow for useradministration and system/security administration. Appropriateguidelines should be included with each procedure on the time requiredto perform it, and that time should be agreed to by the administratorand their manager.

Testing procedures and guidelines should be created for developing andmaintaining application code and architecture configuration.

Training programs should be outlined for those individuals fulfillingsecurity roles in the architecture. User training information shouldalso be developed and distributed in an easy to read and implementmanner. Special attention should be paid to the legal requirements forany disclaimer or policy statements which must be presented to thecustomer when accessing the home banking site.

Online Storefront/Product Sales

In the sample architecture illustrated in FIG. 121, all visitors 12100will be provided access to a retail venue selling a variety of goodsencompassing many merchants. Users will see a different default storedepending on their particular interests and corresponding profiles. Thecustomer is able to view all products in an encapsulated format wherelimited product information is shown. When a product is selected,descriptions, pricing, incentives, and other details can be shown. Thecustomer can place items in a shopping basket, as well as viewing anddeleting items already in the basket. To purchase all the items in abasket, the users shipping and billing information, credit cardinformation, and an email address.

In a sample transaction, the customer will dial into their ISP and surfto the shopping mall site. The web server 12102 will then request acookie from the user's web browser to determine if they have used theservice before, and if they have a personalization profile. If the userhas a cookie, the web server will request the personalization profilefrom the application server 12104 and present it to the user. The userthen can browse through the site, selecting different objects from eachmerchant's page and placing those objects in a shopping cart. Theshopping cart is maintained at the application server. If the userdecides to purchase the items in the shopping cart, he will click theBuy Now button, and will be prompted for shipping and paymentinformation. This information is gathered by the web server and sentback to the application server. The application server then mutes it tothe payment services function at the bottom of the picture. Paymentservices will validate the credit card, and send back a positive ornegative response. Once the payment has been approved, an entry is madein a payment file for each merchant whose goods were purchased. Thispayment file is transferred hourly to each merchant for orderprocessing.

Functional Description

Customer launches a web browser and goes to the retail venue's web site

With a cookie, the retailer's application server can identify thecustomer and choose a merchant to display on the front page. In additionit can tailor the merchant's interactive catalog of products tohighlight those products which would be of interest to the customer

Customer selects items and gets a detailed description of the itemincluding its price.

When customer likes an item a button is pressed and it is added to avirtual shopping cart

Customer clicks on check out which transfers the customer to a secureweb server and asks for a password or the creation of one for a firsttime shopper

Secure web server authenticates user and displays order and credit cardinformation

Customer has the opportunity to change order, credit card or shippinginformation then accepts the order.

Information is passed from the web server to the application serverwhich then routes it to a payment services function.

When the purchase is approved the web server sends an email to thecustomer to confirm the order.

The application server now routes the order/payment information to themerchant's fulfillment system for shipment.

Another email is sent to the customer when the product is shipped.

Security Business Priorities

Public perception that the company and web site is providing proper andeffective security

Protecting their customer transactions and profile information frombeing captured or read

Preventing fraudulent transactions

Providing timely, confidential order files to member merchants

An exemplary security architecture is illustrated in FIG. 122. Thoughhaving a similar function, this architecture is superior to thearchitecture of FIG. 121.

Security Technical Description

Encryption services are provided between the client 12200 and the webserver 12202 at the storefront with SSLv3 using 128 bit session keys12204. Note that this requires clients to have browsers which supportSSLv3. To secure file transfer between the storefront and the merchants,a toolkit is used to implement encryption services at application server12206 (storefront) and the fulfillment server 12208 (merchant).

Authentication services are provided between the merchant and storefrontwith digital certificates, implemented with the same security toolkit asthe encryption services. Certificate management will be performed by thestorefront with a leading CA (Certificate Authority) product. An RA(Registration Authority) is used to process certificate requests.Customers will not be uniquely authenticated. The storefront web serverwill have a server side certificate signed by a leading CA provider toauthenticate itself to customers.

Access control is provided by a firewall at the entry point into thestorefront network. A packet filter router is located before the webserver to limit traffic to the web server to HTTP only. In addition allsensitive servers at the storefront (firewall, database, application,web) have hardened operating systems implemented either with a specificsecure server or an add on software package.

Integrity is provided on the file transfer between the merchant andstorefront with digital signatures implemented at the application serverand fulfillment server.

Auditing services are provided in real time with Intrusion DetectionModules (IDM) on all critical services. Off line auditing is providedwith operating system security scanning tools to identifyvulnerabilities.

Fraud Services are provided by a separate company that specializes insecure payment technologies. The storefront will collect order andpayment information from the customers, and will pass this informationto the payment/fraud services company to check the credit card numbersfor fraud attempts, and to approve and process the transactions. Anencryption toolkit is used between the application server and thepayment services architecture to secure the transactions between the twonetworks.

Implementation Considerations

Separation of duties is necessary to assure proper controls are bothimplemented and monitored. Security administration (adding/deletingusers, updating system configurations, etc.) should be performed by adifferent person than security auditing (review of logs, running OSsecurity scans, etc.)

A security policy is necessary to provide direction on what assetsshould be secured and what threats are of most concern.

Security standards are necessary to assure a consistent, secureconfiguration across multiple platforms and applications.

Administration procedures should be developed and implemented thatclearly outline the procedures administrators must follow for useradministration and system/security administration. Appropriateguidelines should be included with each procedure on the time requiredto perform it, and that time should be agreed to by the administratorand their manager.

Testing procedures and guidelines should be created for developing andmaintaining application code and architecture configuration.

Training programs should be outlined for those individuals fulfillingsecurity roles in the architecture. User training information shouldalso be developed and distributed in an easy to read and implementmanner. Special attention should be paid to the legal requirements forany disclaimer or policy statements which must be presented to thecustomer when accessing the storefront.

Decision Support 1016

FIG. 123 illustrates a flowchart for a method 12300 for manipulatingdata about a customer in an e-Commerce environment. In operation 12302,an e-Commerce application is provided which allows the purchase ofproducts or services. Information about a customer is received from thee-Commerce application and analyzed (see operations 12304 and 12306).This information includes an amount of purchases made by the customerand times at which the purchases occurred. The analysis of theinformation about the customer is stored in operation 12308 and adecision support service for managing the e-Commerce application isprovided in operation 12310 based on the analysis of the informationabout the customer.

The information about the customer may be analyzed to identify afrequency and magnitude of purchases made by the customer. The decisionsupport service may be designed to manage advertisements included withthe e-Commerce application.

As an option, the decision support service may be designed to managepromotions included with the e-Commerce application. As an additionaloption, the information may also include demographics of the customer.Further, reporting tools may also be provided for reporting unfulfilledmerchandise, sales tax, goods sold, back order items, sales forecasting,and activity on the e-Commerce application.

An optimized eCommerce implementation will allow the integration ofeCommerce-related data to be used by a company's decision supportsystem, shown in FIG. 124. ECommerce applications will generate anenormous amount of data about customer spending habits and othercustomer information. To leverage this information to its fullestextent, information systems should be integrated to allow themanipulation and evaluation of this data by the appropriate user groups.

The decision support services for an eCommerce solution are consistentwith any other implementation. Listed below are some specific decisionsupport services to consider in the context of an eCommerce application.

Customer Data Services

Services can be designed for capturing, analyzing, and storing customerbehaviors. The information gathered would be very similar to a profilingservices described in complex personalization.

Market Data Services

Market Data Services are designed to analyze customer data. This data isused to accurately target promotions and advertising to the appropriateuser groups. For example, marketing may be interested to know thedemographics of the people browsing the eCommerce site to moreeffectively sell advertising.

Site Reporting

Site reports may enhance the overall efficiency of the site. Reportingtools and procedures should be put in place to at least cover the basicsite needs. Some basic reporting needs may include transaction report,unfulfilled merchandise, sales tax, goods sold, back order items, salesforecasting and site activity.

Integration 1018

FIG. 125 illustrates the Integration component 9018 of the eCommerceApplication Framework in accordance with one embodiment of the presentinvention. Integration will be a critical factor in the success andadvancement of eCommerce. The topic of integration may be related tomany aspects of eCommerce, each of which should be considered whenassessing the enterprise's overall strategy.

FIG. 126 illustrates a flowchart for a method 12600 for integrating ane-Commerce component into an existing framework of an enterprise. Anunderlying architecture of the e-Commerce component is analyzed andcompared with an architecture of the framework of the enterprise inoperations 12602 and 12604. A determination is made in operation 12606as to whether the e-Commerce component is compatible with the frameworkof the enterprise. The e-Commerce component is integrated with both thearchitecture of the framework of the enterprise and with capabilities ofthe framework of the enterprise in operations 12608 and 12610. Adetermination is also made as to whether the e-Commerce componentrequires an additional capability in operation 12612. If so, theadditional capability is added as an enterprise capability. Preferably,other applications of the framework of the enterprise can utilize theadditional capability.

Custom HTML tags may be provided for enhancing a presentation of thee-Commerce component. Also, templates and/or wizards may be provided forcreating e-Commerce applications and/or interfaces. Preferably, anintegration of the e-Commerce component with data of the framework ofthe enterprise is performed.

Ideally, a business's eCommerce strategy should integrate into thebusiness's enterprise strategy. Following the same logic, the eCommercesystems should also be integrated into the enterprise's architecture andsystems. In most cases, eCommerce implementations are a separate entity,added in a furious haste with little consideration of integration withthe enterprise. As a result, numerous integration patches need to beimplemented to synch data {such as order, customer, and product} withthe enterprise. Furthermore, this will result in additional maintenanceas the enterprise strategy and eCommerce evolve. If the eCommercestrategy requires an immediate presence, a concurrent effort should bemade to understand how the eCommerce systems should be integrated intothe enterprise's overall strategy.

Ideally, the eCommerce strategy should be implemented as an enterprisesystem, integrated with the existing enterprise architecture,capabilities, and data. If the eCommerce system needs additionalcapabilities, these should be assessed and potentially added asenterprise capabilities. For example, if the enterprise does not supportcomplex personalization, these capabilities should be introduced as anenterprise capability rather than just an eCommerce capability. Otherenterprise applications could utilize these capabilities in the future.

External Enterprise Integration

In many cases the eCommerce implementation will span multipleenterprises. Implementing a buyer-centric or trading partner typesolution will involve multiple enterprises. In these cases, theintegration aspect will often prove to be the key factor to the successof the implementation. Some of the key hurdles for a multi-enterprisesystem are:

-   Data model compatibility-   Technical infrastructure-   Messaging formats-   Adoption hurdle; The addition of new trading partners should be a    quick and easy process-   Collaborative environment promoting interactivity    Implementation Considerations

An eCommerce system can be added as a package or one component at atime. Here are some key considerations concerning package integration.

Underlying Architecture

The package's underlying architecture should be analyzed and comparedwith the enterprise's system.

Data Model

Does the package introduce a proprietary data model?

Commerce Capabilities

How much of the commerce capabilities does it provide? For example, inmerchandising and transaction processing, how different are the commercecapabilities offered from those desired? Does it provide open API's?

Component Integration

The commerce package itself may need to integrate components such aspayment systems, tax software or other components. Research on whatoptions can be integrated may be important. Some packages may not becompatible with any other components and require use of theirproprietary components.

Custom HTML Tags

Some packages will provide custom HTML tags in order to enhance thepresentation. Utilization of these tags may result in a less open andmore proprietary system. Be sure to understand the impacts using thesetags may have (Will they work with all browsers? How will these bechanged in future release?).

Templates and Wizards

Many of the eCommerce packages provide templates and wizards to createsome of the basic eCommerce applications and interfaces. The templatesand wizards may reduce some development time by providing this base.They should only be considered a starting point for the development ofrobust eCommerce applications. In most cases, creating an interface tothe implementation's specific needs will require considerable additionalcustomization.

The following portion of the specification discusses a bandwidth marketaccording to an embodiment of the present invention. This embodiment isparticularly applicable to the demand and supply planning aspect of theeCommerce Market Space. In the discussion, the bandwidth provider is the“manufacturer” as set forth above while the bandwidth distributor is the“service provider” as set forth above.

Bandwidth Market Objectives of a Bandwidth Market

Four important trends seem to dominate the future of data networking.First, customers will have a growing number of options when selecting anetwork vendor and technology. New higher bandwidth network technologiesare being introduced to take advantage of existing carrierinfrastructures. Second, as vendors continue to build out their networkinfrastructure, bandwidth is becoming increasingly available and atlower costs. As more bandwidth becomes available, competition amongvendors to capture market share will result in dramatically lowerprices. This increase in competition among network vendors willundoubtedly change the market significantly. Third, vendors will startto shift to usage-based pricing structures. As competition increases,they will not be able to continue to reap profits from flat rate pricingschemes. Fourth, the popularity of the Internet is driving a trend ininternetworking. As the technology moves forward, more and more networkswill be joined to one another, resulting in seamless transport betweennetworks.

One objective of the instant bandwidth market is to provide a moreefficient mechanism for buying and selling network bandwidth. Byproviding a market in which distributors can trade bandwidth, thefundamental forces of supply and demand drive the appropriate prices forthe bandwidth providers' services.

Place to Buy and Sell Bandwidth

Without a bandwidth market, if a customer subscribes to a distributorwho offers a service that typically requires lower data rates, such asInternet access, the distributor may not have purchased enough bandwidthfor other, more bandwidth intensive applications. If a customer decidesthat they want to use a bandwidth provider for higher bandwidth or moredemanding QoS applications such as video conferencing, their distributormay not be able to provide high enough access rates or guaranteedservice levels within the customer's Location Area Code (LAC). Withoutknowing all possible services that its customers may use, a distributoris unable to purchase appropriate bandwidth and service levels tosatisfy all requests.

In a similar situation, if a consumer in a first location wants to makea video call to someone in a second location and pay for the call,unless their Distributed Virtual Network Service (DVNS) has purchasedbandwidth in the LAC of the second location, a bandwidth provider cannot complete the call. This limitation has serious implications. First,many applications can not to traverse DVNS boundaries, forcing acustomer to only communicate with others who share their samedistributor. Second, as most distributors are probably be focused onoffering a single service (e.g. DSS TV or Internet access), theircustomers can not access other services on a bandwidth provider'snetwork. The bandwidth provider can become a network dedicated tosingular functions. People who wish to access multiple services may needto subscribe to more than one distributor, and may require additionalCustomer Premise Equipment (CPE).

In order to allow customers to access any location or service onbandwidth providers' networks, it is necessary for distributors to beable to buy and sell bandwidth. If a customer wants to make a video callto a location in which its distributor does not have bandwidth, the DVNSshould be able to purchase bandwidth from another distributor who hasexcess capacity. Ideally, this could be done on a real-time basis sothat customers can immediately access the location or service. Not onlydoes this provide a mechanism for customers to cross DVNS geographic andservice boundaries, but it also provides a way for distributors to selloff their excess bandwidth. As distributors can now sell off unusedbandwidth in a secondary market, they are more likely to purchaseadditional wholesale capacity. Like other commodities, bandwidth couldbe traded among distributors, ultimately resulting in an efficientmarket.

In addition to reducing risk for distributors, a bandwidth providercould also use the market to post excess wholesale capacity.

Efficiently Priced Bandwidth

Another major benefit of a bandwidth market is its ability toefficiently price bandwidth. As distributors buy and sell capacity, theprice of the bandwidth moves towards a market equilibrium where supplyhits demand.

As bandwidth is traded by service level guarantees and LAC, thiseliminates some of the complex analysis that distributors need toperform in order to determine fair market prices. In addition, byanalyzing sales in the bandwidth market, a bandwidth provider is able toaccurately gauge demand and price bandwidth in each location. Taken astep further, a bandwidth provider could post all of its bandwidth on awholesale market instead of negotiating directly with each distributor.Distributors could then bid for this bandwidth, resulting in efficientwholesale pricing in which the bandwidth provider maximizes itsrevenues.

A market for trading bandwidth virtually eliminates the difficultpricing problems faced by a bandwidth provider's marketing department.In addition, distributors have the ability to sell off excess bandwidth,reducing their risk significantly. To further reduce risk, a futuresmarket could be established allowing distributors to hedge bandwidthpurchases. This would allow distributors who are mainly interested inselling value added service to their customers to avoid fluctuations inbandwidth prices.

Assists with Roaming

The ability of a DVNS to purchase another distributor's bandwidth has anadditional impact for roaming, which is sometimes referred to as“nomadicity.” One of the goals of a bandwidth provider may be to allow acustomer to take their Subscriber Identifier Module, or SIM card, andplug it into another CPE when they are on the road. T his would allow abusiness traveler to plug his or her SIM card into a hotel's CPE toaccess the bandwidth provider's network. However, if the hotel CPE doesnot have enough bandwidth available to support the business traveler'sapplication, its DVNS could purchase the extra capacity on the bandwidthmarket.

Avoid Expensive Bilateral Agreements

Without the instant bandwidth market, distributors have to negotiateindependent contracts with each DVNS that manages CPEs with content thattheir customers access. This may require hundreds of bilateralagreements among distributors. As these bilateral agreements may bedifficult and costly to negotiate, many distributors would not allowtheir customers to access certain services unless their is enoughcritical mass to warrant a contract.

In addition, distributors would have to negotiate with otherdistributors every time that they want to resell their excess capacity.This too could result in hundreds of bilateral agreements, and could becostly to negotiate and administer. Dispute resolution could alsopresent a major problem.

With the bandwidth market, distributors can avoid costly bilateralagreements. The market provides an efficient means of trading bandwidthamong distributors. As distributors would enter into a contract with themarket, they do not have to negotiate with each DVNS that theyultimately trade with. The bandwidth market also serves as an equalizer,giving small distributors the same ability to purchase bandwidth aslarger providers. By allowing a smaller DVNS to purchase bandwidth, itcould provide its customers with the same access as larger distributors.A bandwidth provider could benefit by selling wholesale capacity on thebandwidth market, avoiding periodic negotiations with hundreds ofdistributors.

Establish Bandwidth Contracts

Another benefit of the bandwidth market is its handling of contracts. Toallow the market to operate efficiently, bandwidth could be packaged andtraded as contracts. In order to package bandwidth, it may be necessaryfor the bandwidth market to define products. These products are based ona combination of bandwidth (or cell counts), location, service levelguarantees, time of day, duration, and other factors. Althoughestablishing these structures is a complex task, it is much easier forthe bandwidth market to go through the steps of defining these packagesonce, rather than distributors worrying about them every time that theynegotiate with other providers. This simplifies the sales processdramatically.

Once a contract has been purchased, the DVNS issues a Contract ID to itscustomer's CPE during call setup. In addition to defining bandwidth,service level guarantees, and duration, the contract also determines whopays for the call (e.g. calling party pays, collect call, etc.). As thecontract is purchased at an agreed upon price, this price providesrating information that can be used for billing purposes. When thecontract is executed, the CPE reports usage data back to the DVNS. Thisusage data includes the Contract ID, allowing the DVNS or a settlementsprocess to correlate the call back to the original transaction. As thecontract is recorded at the time of the transaction, this informationcould be forwarded to the distributors, the bandwidth provider, and aclearinghouse for processing. This simplifies the revenue allocationprocess, by providing clear information for rating, billing, andsettling the call.

One advantage of having call setup based on contracts is that the CPE isgiven a well defined call duration and total cell or bit count. As theDVNS steps out of the picture after call setup, the CPE is responsiblefor making sure that it does not exceed these agreed upon thresholds. Ifthe CPE reaches the maximum duration or cell count, it automaticallyterminates the call. While ATM does require the CPE to shape its trafficto conform with the Peak and Sustainable Cell Rates and the transfercapabilities agreed upon during call setup, it does not define the callduration or maximum traffic transfer. The bandwidth contract does a nicejob in filling this gap, and is ideal for supporting pre-paid callingstructures (e.g. credit or debit card).

Another benefit of the bandwidth contract is that it specifics agreedupon service levels for call setup. After the call has been completed,usage data can be analyzed to see if these service levels have been met.This allows a bandwidth provider and its distributors to providecustomers with Service Level Agreements that may have penalty clausesfor violations.

Bandwidth Market Structure

The following is a discussion of exemplary embodiments of the bandwidthmarkets.

Bandwidth Provider vs. External Secondary Market

Even if a bandwidth provider is not willing to develop and operate abandwidth market for buying and selling its services, it is verypossible that a third party may fill the gap. If a bandwidth provider isunable to accurately price bandwidth, inefficiencies in pricingbandwidth result in arbitrage opportunities. Like airline ticketaggregators, speculative distributors could start buying up under pricedbandwidth and selling it to other distributors. These transactions areinitially handled by bilateral agreements. As transaction volumesincrease, distributors start to form groups of trading partners.Applications are developed to streamline the process of tradingbandwidth. Eventually, a bandwidth market for a bandwidth provider'sservices will evolve out of these alliances.

If a bandwidth provider decides not to develop the bandwidth market, thealternative market that develops may have some negative aspects. First,the larger the number of bilateral trading agreements, the greater thelikelihood for error. If two distributors misunderstand one another, itis possible that each DVNS may assign the same bandwidth allocation todifferent customers. This could result in an oversubscription ofservices.

Second, trading alliances may exclude smaller or less political DVNSs,ending up with an “Old Boys Network” of distributors dominating themarket. This could result in a small oligopoly dictating bandwidthpricing, potentially forcing other distributors out of business. As onewould expect, losing control of pricing for a bandwidth provider'sservices could have dangerous consequences.

Rather than let another organization establish a market for tradingbandwidth, a bandwidth provider could develop the bandwidth marketitself. In addition to keeping control of bandwidth pricing, thebandwidth provider could earn additional revenue by charging tradingtransaction fees. When coupled with clearing functions, this marketcould prove an important selling point for attracting distributors. Byoffering a simple and controlled mechanism for reselling excessbandwidth, the bandwidth provider reduces the risk faced by distributorsof purchasing too much bandwidth. A distributor may be more likely tooffer the bandwidth provider's services if they know that a bandwidthmarket is available to buy and sell excess capacity, and it is managedand operated by the wholesale provider.

Open and Closed Markets

The most efficient way to trade bandwidth is to have one market for allparticipants. However, in order to encourage “Charter Customers,”bandwidth providers may need to offer special rate structures andbenefits to potential distributors. Once the bandwidth market isestablished, many of the benefits, such as bandwidth contracts and CPEtraffic shaping, will be useful even for distributors who have largediscount structures. Rather than create custom purchasing mechanisms forthese customers, they could use the same processes and applications thatthe market uses for buying and selling bandwidth, even if they aredealing exclusively with only one bandwidth provider. Because of thestandardized process for selling bandwidth, a bandwidth provider canavoid having to develop custom interfaces for each of its largedistributors.

There may still be a need for the establishment of bilateral agreementsbetween a bandwidth provider and its “Charter Customers.” In addition,many distributors who specialize in the same value added services but indifferent regions, may want to establish private trading blocks. Forexample, as video conferencing providers have similar bandwidth needs,they may want to establish a closed market for trading among themselves.This would allow them to focus on similar type bandwidth contracts indifferent regions of the world, and is somewhat analogous to cellularroaming agreements.

For these reasons, the bandwidth market may be segmented into multipletrading floors or markets. As shown in FIG. 127, the top level segmentwould be a Pre-Sold bandwidth market 12700. This would be the vehiclethat a bandwidth provider could use to privately sell long termcontracts to larger distributors. Bandwidth sales in this market can bepre-negotiated between the bandwidth provider and the distributor. Themarket would be used to record and track these transactions.

The next segment would be the Open Market Bandwidth Sales 12702. Thismarket would be used by distributors to post the excess bandwidth thatthey wish to sell. In addition, any bandwidth that a bandwidth providerhas not sold under pre-negotiated agreements could be posted to thismarket. As this market segment is open to all of the distributors, itshould be an efficient market in which pricing is established at thepoint where supply hits demand.

FIG. 128 illustrates one method of providing an open market environmentin accordance with the principles set forth hereinabove. In operation12800, bandwidth is allocated on a network among a plurality of users,i.e., distributors. For example, bandwidth could be allocated based onan amount of bandwidth the users purchase. Or bandwidth could beallocated based on a contract, such as an allotment of a predeterminedamount of bandwidth per period, e.g., month, year, etc.

In operation 12802, an amount of unused bandwidth of a first user isidentified. FIG. 129 illustrates a method of automatically identifyingthe first user's unused bandwidth. In this example, unused bandwidth isidentified by monitoring bandwidth use of the first user to determine anamount of bandwidth used by the first user in operation 12900. Inoperation 12902, the amount of bandwidth used by the first user iscompared to the total amount of bandwidth the first user has beenallocated. The amount of unused bandwidth is determined in operation12904 by subtracting the amount of bandwidth used by the first user fromthe total amount of bandwidth allocated to the first user. The firstuser would then be notified of the amount of unused bandwidth inoperation 12906 and sent a request in operation 12908 asking whether thefirst user would like to sell or trade the unused bandwidth.

FIG. 130 illustrates another exemplary method of identifying the amountof bandwidth of the first user, as set forth in operation 12802 of FIG.128. In operation 13000, the first user is sent a request asking whetherthe first user has any unused bandwidth that the first user would liketo trade or sell. A response from the first user indicating an amount ofunused bandwidth that the first user would like to trade or sell isreceived in operation 13002. The availability of the amount of unusedbandwidth that the first user would like to sell or trade is verified inoperation 13004.

Referring again to FIG. 128, a request for bandwidth on the network isreceived from a second user in operation 12804. The request may bereceived before or after the amount of unused bandwidth is identified inoperation 12802, above. The request may be directly received from thesecond user or an agent of the second user. Alternatively, the seconduser, or all of the users, may be notified of the amount of unusedbandwidth available. The second user may be notified in any of amultitude of ways. For example, a listing of available unused bandwidththat is for sale or trade by any number of users may be compiled anddisplayed or sent to some or all of the users of bandwidth. The listingcould be complex or as simple as a listing on a web site with the priceand name and contact information of the first user. Once the user isnotified, a response from the second user as to the amount of unusedbandwidth the second user would like to purchase or trade for would beawaited and received.

In operation 12806, the unused bandwidth of the first user isreallocated to the second user. In other words, the second user is givencontrol of the unused bandwidth to use, reserve, or trade or sell. Thebandwidth provider may be contacted and told to reallocate the bandwidthby terminating the first user's access to the unused bandwidth andgiving the second user access to the bandwidth. Alternatively, accesscodes that would have been used by the first user to accesspredetermined amounts of bandwidth corresponding to the unused bandwidthbeing reallocated may be turned over to the second user to permit thesecond user to access the bandwidth

In one embodiment of the present invention, the unused bandwidth that isreallocated to the second user in operation 1280131 of FIG. 128 is doneso in exchange for money paid by the second user to the first user. InFIG. 131, a method of exchanging money for bandwidth is illustrated. Inoperation 13100, notification of an agreement to sell bandwidth for anamount of money is received. Information concerning the manner ofpayment is received in operation 13102. This information includes howthe second user is going to pay for the bandwidth. For example, accessinformation of a bank account or of a credit line could be received fromthe second user, which would be used to perform an electronictransaction of money from the second user's account to the first user.In operation 13104, the transfer of money is verified such as byreceiving an electronic receipt from the bank of the first user whichacknowledges a deposit of the money. In operation 13106, the unusedbandwidth of the first user is reallocated to the second user.

Further, a transaction fee may be charged for reallocating the unusedbandwidth. The transaction fee may be a percentage of the total value ofthe bandwidth traded or sold, a flat fee charged per transaction, or aflat fee charged per unit of bandwidth.

In another embodiment of the present invention, the unused bandwidth ofthe first user is packaged with unused bandwidth of another user andreallocated to the second user under the terms of a contract, asdiscussed above in the “Establish Bandwidth Contracts” sectionhereinabove. This would allow a second user who requires more unusedbandwidth than the first user has available to satisfy the second user'srequirements.

Looking again to FIG. 127, the remaining segments at the lowest levelare the Closed Markets 12704. These markets would be established toallow vendors who offer similar services (e.g. DSS TV, ISPs, etc.) totrade among themselves. In some instances, a bandwidth provider may begiven the right to post excess bandwidth that fits predefined contractprofiles to some of these markets. The bandwidth market could be modeledon either an auction concept or as commodities markets.

All transactions in the foregoing markets can result in a bandwidthcontract. These contracts provide an effective mechanism for trackingbandwidth sales, and are very useful during the rating and settlementsprocesses.

Static vs. Real-time Bandwidth Purchases

In an exemplary model, a bandwidth provider requires distributors topurchase wholesale Priority 1 and 2 traffic at least 24 hours before thetime that it is needed. This means that distributors may be forced toestimate their bandwidth requirements for the following day. As theInternet outage during the last US presidential elections suggests,bandwidth demand may fluctuate significantly for a number of externalreasons. In certain instances, it may not be possible to thedistributors to predict demand. While the bandwidth market may provide agood mechanism for determining price when the next day's demand isknown, it does not help in situations of great uncertainty.

In addition to causing problems for distributors in tracking andestimating customer demand, the 24 hour advanced bandwidth model couldbe problematic for the bandwidth provider. Just as distributors may notbe able to predict the next day's demand, the bandwidth provider may notbe able to determine the optimal price of the bandwidth. While a staticbandwidth market based on contracts negotiated 24 hours in advance oftheir actual execution may certainly help determine pricing, the 24 hourrequirement may result in some inefficiencies. On a similar note,although the bandwidth market reduces risk by providing a mechanism forreselling excess capacity, the 24 hour rule results in a one dayliability to distributors.

Another problem with the 24 hour requirement is that it does not allow acustomer to transparently access irregular services or locations. If acustomer decides that they want to call an unusual location or access aservice that has not been pre-negotiated by their DVNS, they may have tocall up their distributor to have them acquire the appropriate servicefor the next day. A customer in the United States may not be willing tocontact its service provider 24 hours in advance to setup a videoconference call to someone in Botswana.

What is needed to solve these problems is the capability to purchasebandwidth in real-time. By giving the distributor the ability to buy andsell bandwidth in real-time, an efficient market can be created in whichrevenues are maximized. The value of the bandwidth is allowed to “float”based on supply and demand. This would also be much more efficient thana static market, where the price is set or buyers are allowed to bidover time with the highest bid taking the bandwidth, because thebandwidth could be purchased immediately and perhaps below the pricethat would otherwise be asked for the bandwidth in a static market. Themechanics for negotiating real-time bandwidth contracts is outlinedhereinafter.

While a real-time bandwidth market is very desirable, it does not negatethe benefits of a static bandwidth market. Although a static bandwidthmarket does not result in the same pricing efficiencies that can berealized in a real-time market, it still offers benefits to thebandwidth provider and its distributors. As the market provides amechanism to buy and sell excess bandwidth, distributors may be more aptto commit to large, long-term commitments. In addition, althoughcustomers may need to call a day in advance to access a service orlocation, this is better the not having access. Distributors are alsorelieved of the burden of having to negotiate hundreds of bilateralagreements. As discussed below, the bandwidth contracts that are tradedin the market are very useful for rating and settlements processing.

Contract Negotiation During Call Setup

In order to support a real-time bandwidth market, it may be necessary toinclude contract negotiation in the call setup process. FIG. 132illustrates a contract negotiation process. In operation 13200,bandwidth on a network is allocated. i.e., sold or traded in allotments,among a plurality of users. In operation 13202, an amount of unusedbandwidth of a first user is identified. A request for bandwidth on thenetwork is received from a second user in operation 13204. It should benoted that operations 13200-13204 may be accomplished by any meansincluding those specified hereinabove with respect to operations12800-12804 of FIG. 128.

Then, a negotiation between the first and second users is allowed inoperation 13206 to determine transaction terms for reallocation of theunused bandwidth from the first user to the second user. In its simplestform, one embodiment of the present invention would simply receivepricing information from one user and send it to the other user, andvice versa, over and over until each user is satisfied with the termsfor the transaction. Upon acceptance of the transaction terms by thefirst and second users, contract information relating to the transactionterms is sent to the first and second users in operation 13208.Optionally, the terms may set forth in a contract format which the firstand second users may agree to form a contract. Alternatively, acceptanceof the terms of the transaction may be an acceptance of a contractincluding the terms of the transaction, and the contract information isa recitation of the terms of the contract.

In one embodiment of the present invention, the contract informationdefines the amount of unused bandwidth, a duration of use of the unusedbandwidth, a service level, and/or a price. Optionally, a transactionfee may be charged for allowing the negotiation between the first andsecond users. Further, the step of allowing the negotiation between thefirst and second users may occur in real time. In another aspect of thepresent invention, the contract information is sent to a third partyafter the third party requests bandwidth from the second user.Furthermore, the contract information may include a contract identifier.

FIG. 133 outlines the exemplary contract negotiation of FIG. 132 in moredetail. In Step #1, a DVNS 13300 that has purchased too much bandwidthpackages their excess capacity and posts it to one of the segments onthe bandwidth market 13302. When a customer call request comes in andthe distributor 13304 does not have the bandwidth available (Step #2),its DVNS 13306 first determines the appropriate call parameters. It thenbids on and purchases bandwidth from the bandwidth market 13302 (Step#3). The bandwidth market 13302 completes and records the transaction(Step #4), and forwards the contract information, including bandwidth,location, service levels, and Contract ID, to each DVNS 13300, 13306involved in the transaction (Step #5). The information is also forwardedto the rating, clearing, and settlements processes in the NetworkBusiness Center (CNBC) 13308. When the information is successfullyreceived by the DVNS 13306, the contract information, including theContract ID, is forwarded to the CPE 13304 along with other call setupinformation (Step #6). After the call is established, the CPE 13304periodically sends cumulative Raw Usage Data (RUD) information to itsDVNS 13306 (Step #7). Either at the end of the call or an appropriateinterval, the DVNS 13306 cuts an Event Data Record (EDR) and forwards itto the Network Business Center (CNBC) 13308 (Step #8) for rating andsettlements processing (Step #9).

One of the advantages of the present process is that the CPE can usestandard call setup signaling assuming that it is similar to the Q.2931method used by ATM. When a call request arrives at the DVNS, the callparameters and bandwidth requirements are assessed. The customer isfirst validated by the DVNS, which also checks to see if they areallowed to request this service. If the request is valid and the DVNShas available resources as a result of other contracts (which may befrom long-term bandwidth purchases made in the Pre-Sold bandwidthmarket), the DVNS may complete the call and pass the Contract ID back tothe CPE in a User-Defined Information Element (IE) using standard Q.2931signaling. If the DVNS does not have the appropriate bandwidthavailable, it may temporarily suspend the call setup process andpurchase the bandwidth using the process outlined above. Assuming theDVNS successfully purchases the resources, it may forward the ContractID specified by the transaction to the CPE and complete the call setupprocess. All calls may require a Contract ID to complete. If for somereason the bandwidth is not available, the DVNS may reject the call andnotify the CPE that resources were not available.

It should be noted that ATM is designed to allow the customer torenegotiate call parameters, such as Peak Cell Rate and Sustainable CellRate, even after the call is established. If a bandwidth provider plansto fully support ATM, a different contract may be required to satisfy anupgrade request. This may require that the DVNS has the ability torenegotiate in the middle of a call. As the call may have two or moreContract IDs, the DVNS could close out an EDR record and treat theremainder of the connection as a new call assigning a new EDR.

In evaluating the real-time purchasing of bandwidth during callestablishment, one pertinent area is the time required to complete atransaction. As many protocols such as ATM have timeout values for callsetup, it may be necessary to stay within these specifications. Thesetimeout values are typically high to accommodate network congestion. Inaddition, some of these values can be tuned by vendor equipment.

Setting CPE Thresholds

One of the advantages of the bandwidth market and bandwidth contracts isthe ability to control CPE usage patterns. As a DVNS may need to assigna contract to complete all call setups, information in this contract canbe passed to the CPE. Based on a variety of factors such as thecustomer's credit limit, the CPE can be instructed to terminate a callwhen it hits certain thresholds. These thresholds could be based on callduration or cell counts. This may be an excellent mechanism forsupporting pre-paid billing.

In addition, the DVNS may be configured with certain cost thresholds fora particular customer. When establishing an account, the customer couldinstruct the DVNS not to allow video conference calls if the rate isgreater than $1.00 a minute. If the DVNS is unable to satisfy a callrequest within certain pre-defined thresholds, the CPE may be instructedthat the resources are not available, possibly notifying the customerthe reason that the call could not be setup (e.g. rates too high). Withlittle effort, this could be extended to allow the customer to configurethe information directly into the CPE, which in turn would pass it tothe DVNS in User Defined Information Elements during call setup.

Hot Billing

Another advantage of bandwidth contracts are their ability to supporthot billing. By requiring a contract in order to complete a call, theDVNS could take advantage of pricing information inherent in theagreement. If the DVNS forwards this pricing information along with thecontract to the CPE, this would allow the CPE to notify the user on areal-time basis how much they have spent during the call. In addition,because the rating information accompanies the bandwidth contract, theDVNS can calculate the cost of the service and debit the userimmediately.

It is important to note that taxation may need to be evaluated if thebandwidth provider supports this model.

Clearinghouse Function

In addition to providing markets to buy and sell bandwidth, thebandwidth provider may also provide a clearinghouse function. As allusage data may be tagged with a Contract ID, the contracts generated inthe bandwidth market may be excellent tools for rating calls anddetermining revenue allocation. These contracts may be forwarded to therating and settlements engines, providing important information neededfor each of these processes. Usage data may be correlated to theappropriate contract, which may provide rating information, servicelevel guarantees, and revenue allocation information. This informationmay be used by the rating and net settlements processing.

As different bandwidth market segments may have different contractstructures, it may make sense for the clearinghouse function to mimicthe bandwidth market structure. Pre-Sold Bandwidth of a bandwidthprovider could be cleared by a Pre-Sold Bandwidth Clearing function.Likewise, the Open and Closed markets could have their own clearingfunctions. Eventually these may feed into one larger clearing process,which provides net settlements functions between a bandwidth providerand its distributors.

One of the key functions of the clearinghouse is to offer a mechanism tobill back services between distributors. If a DVNS in Thailand purchasesbandwidth from an American distributor in order to complete a video callto the United States, the American distributor needs some mechanism forreceiving payment from the Thai DVNS. As all distributors must deal witha bandwidth provider at some level, it makes sense for the bandwidthprovider to provide clearing functions between distributors. Theclearing function may allow the US DVNS to bill the Thai DVNS for thebandwidth that it used. The Thai DVNS may then bill its customer for thecall. By leveraging a bandwidth provider's fiduciary relationship witheach DVNS, the bandwidth market, when coupled with a clearinghousefunction, provides a mechanism for one distributor to indirectly billanother distributor's customers.

FIG. 134 illustrates a method of performing clearing and settlementfunctions in a bandwidth market environment. First, terms regarding areallocation of bandwidth from a seller to a buyer are received inoperation 13400. These terms may be received from input of the sellerand buyer. Alternatively, the terms may be taken from a set ofguidelines concerning the transaction. In any case, the terms may setforth, for example, the purchase price, time for transfer of thebandwidth, penalties, latency requirements, etc. See the discussion withreference to FIG. 135 through below for more detail.

Then, in operation 13402, an amount of money the buyer owes the sellerfor the reallocated bandwidth is determined based on the terms regardingthe reallocation of bandwidth. Most often, this may be calculated as theprice per unit of bandwidth times the number of units of bandwidth beingsold and taking into account any penalties and discounts. If amounts ofbandwidth of more than one seller are sold together such as under acontract as discussed above, the amount of money the buyer owes eachseller is calculated. More detail is provided below in the discussionreferencing FIGS. 135 through 139.

Finally, in operation 13404, the buyer is notified of the amount ofmoney the buyer owes the seller. Notification may be made in a varietyof ways. One is through email. Another is via facsimile. Yet another wayis an automated voice message sent via telephone. Also, a printout withthe amount on it (i.e., a bill) may be sent to the buyer via a deliveryservice such as the United States Postal Service.

Optionally, the present invention may verify that the terms regardingthe reallocation of bandwidth have been complied with. This couldinclude verifying the amount of bandwidth that the seller is offeringfor sale. This could also include verifying that the seller hasrelinquished control of the bandwidth. Further, the buyer's access tothe newly purchased bandwidth could be verified.

In one embodiment of the present invention, usage data may be receivedfrom the buyer and used to determine the amount of money the buyer owesthe seller for the reallocated bandwidth. In such an embodiment, thebuyer could be allowed to purchase bandwidth according to the buyer'srequirements. The buyer would then only be liable for the amount ofbandwidth actually used, plus incidental costs.

The usage data may also be used to determine the cost per unit ofbandwidth. Bandwidth used during peak hours is most often more valuablethan, say, bandwidth used in the middle of the night. Thus, the usagedata could include times of use of the bandwidth as well as theparticular amount of bandwidth used during peak hours.

Optionally, the usage data may be correlated with corresponding termsvia a contract identifier (Contract ID as discussed above) associatedwith the usage data. The contract identifier would allow the DVNS or asettlements process to correlate the use of bandwidth back to theoriginal transaction to ensure that the proper party is being billed.

A transaction fee may be charged for performing the determination of theamount of money the buyer owes the seller for the reallocated bandwidth.The transaction fee may be a percentage of the total value of thebandwidth traded or sold, or may be a flat fee charged per transaction.

Additionally, as the present invention manages both the bandwidth marketand Clearinghouse functions, it is also the natural choice forarbitrating disputes between distributors.

In an exemplary embodiment of the present invention, operations 13400and 13402 of FIG. 134 are handled by a data processing based apparatuswhich makes an automated trading market for one or more amounts ofbandwidth. The system retrieves the best obtaining bid and asked pricesfrom a remote data base covering the ensemble of institutions or othersmaking a market for the relevant amounts of bandwidth. Datacharacterizing each bandwidth buy/sell order requested by a customer issupplied to the system. The order is qualified for execution bycomparing its specific content fields with predetermined storedparameters. The stored parameters include items such as the operativebid and asked current market prices, the amount of bandwidth availablefor customer purchase or sale as appropriate, and the maximum acceptablesingle order size.

As used herein, the terms “buy” and “sell” refer to customer anddistributor purchases and sales. It should be noted that when a customerpurchases an amount of bandwidth, the market maker sells the amount ofbandwidth from its position, either reducing a long position, increasinga short position, or both where the amount of bandwidth sold to thecustomer exceeds the initial long position. When a customer sellsbandwidth, the market maker adds bandwidth to its position and/orreduces a short position in the bandwidth.

The system may be implemented by any digital data processing equipmentper se well known to those skilled in the art, e.g., any common bussystem interconnecting a digital processor, manual data entry terminalapparatus, one or more memories (one of which contains the controllingprogram), and output signaling apparatus such as a cathode ray tube andprinter. The system may be coded in any program language per se wellknown to those skilled in the art. The process variables may be of anyform which conform to the constraints of the particular language beingused and the below listed variables are for purposes of illustrationonly.

In the operation of an illustrative system, the below listed processvariables may be utilized:

Variable Functional Description Order Variable BWTH An order fieldidentifying a particular amount of bandwidth a customer wishes to buy orsell. AMT Amount of bandwidth BWTH in a transaction. CUSTID Customeridentification. B/S Buy vis-a-vis sell bit, identifying whether thecustomer wishes to buy or sell bandwidth BWTH PR/M An order variablefield containing a customer price for a limit order (minimum price for asale of bandwidth or a maximum price he will pay for a purchase) - or acode designating a market order where the customer will accept thecurrently pre- vailing market price. SP Special instructions field(e.g., special commission structure or the like. .0.RN Order number(usually sequential). .0.RIGID Identification of the originator of thetransaction (e.g., a branch office or account executive). Market TradeCriteria BSTB(BWTH) Best bid price for the bandwidth BWTH as retrievedfrom the Bandwidth Market, i.e., the highest price some market maker iswilling to pay for the amount of bandwidth. This is an indexed variable,or array, having one element for each amount of bandwidth handled by thesystem proprietor. The other arrays below are similarly indexed by BWTH.BSTA(BWTH) Best asked price for the amount of BWTH supplied bandwidth byBandwidth Market, the lowest price a market i.e., maker is willing tosell the bandwidth BWTH. BSZ(BWTH) Buy size, which is the amount ofbandwidth (the array index BWTH) available for customer purchase at aparticular price from the system proprietor SSZ(BWTH) The amount ofbandwidth BWTH that the market maker will accept from customer sales ata particular price (a sellsize array). .0.RSZ(BWTH) The maximumacceptable order size which the system operator will accept for thebandwidth BWTH. Profitability Variables AVCST(BWTH) Average cost of theamount of bandwidth BWTH. P.0.S(BWTH) The amount of bandwidth (currentposition)of each type of bandwidth BWTH held by the market maker.P.0.S(BWTH) is positive for a long position and negative for a shortposition. LP.0.S(BWTH) The previous (last) position of the market makerin the bandwidth BWTH before execution of a current trade in BWTH.PR(BWTH) Profit to date made by the system operator on purchases orsales of bandwidth BWTH.

FIG. 135 illustrates in overview a system arrangement for implementingthe over the counter (or other) bandwidth market making system of oneembodiment of the instant invention. For specificity and withoutlimitation, over the counter bandwidth trading is presumed and it willfurther be assumed that the market making institution (systemproprietor) is a brokerage firm. The market making system includescomposite digital computing apparatus 13500 which includes a processorand ancillary memory. The memory constituents of processor 13500 storethe system controlling program, and an appropriate scratch pad memorystores all necessary processing operands. Digital computer 13500 isconnected by an output line 13502 to a customer account processor 13504,for example the brokerage firm computer which handles all of thecustomer account records and files including customer balances,bandwidth positions, trade records, and the like. It should beunderstood that CPU 13500 and customer account processor 13504 could becombined in single, integrated computing equipment.

The processor 13500 communicates over a link 13506 with a traderterminal position 13508 containing an output signaling device such as acathode ray tube display, and data input apparatus such as a keyboard.Trader terminal 13508 has two portions. A terminal position section T1communicates with the processor 13500; and a section T2 is connected bylink 13510 to a bandwidth market system 13514. The trader terminal 13508communicates its current bid and asked prices for bandwidth s in whichit makes a market to bandwidth market via link 13510—as do other marketmakers bridged (13512) to link 13510. The terminal portions T1 and T2may be one integrated smart terminal (computer) assembly, or twoseparate devices available to the trader at the station 13508.

The processor 13500 receives and stores the best (highest) bid(processing variable BSTB(BWTH)) for each amount of bandwidth (BWTH) inwhich it makes a market, and the best (lowest) asked price BSTA(BWTH)from the bandwidth market system 13514 via a communications path 13516.The best bid and best asked prices as reported by the bandwidth marketform the so-called “insider market” for over the counter amounts ofbandwidth. Processor 13500 communicates to the bandwidth market system13514 via a link 13518 each reportable, executed trade for variousinformational and regulatory purposes. Link 13518 may also report tradesto the Consolidated Tape Authority (CTA) and the NASD National MarketSystem (NMS) for subsequent reporting to the financial industry andgeneral public. Communications path 13518 also connects processor 13500with the NASD small order execution system (SOES) and computer assistedexecution system (CAES) which can participate in relatively small orderexecution.

Input/output network 13520 provides data communication with the variousbranch offices 13524 of the brokerage house. Line 13520 permitscommunication with either the branch order entry clerk or directly tothe account executives at each branch. While only one branch 13524 isshown in FIG. 135, it is to be understood that a multiplicity ofbranches 13524 are in data communication with processor 13500. Computer13500 also communicates with third party financial houses 13526 via atwo-way data link 13522 (e.g., including INSTINET).

To characterize the FIG. 135 arrangement in overview, the operative(best bid, best asked inside market) prices for each amount of bandwidthin which the system proprietor makes a market are communicated over link13516 from bandwidth market and repose in memory at processor 13500. Themarket maker has a position in each amount of bandwidth in which hemakes a market and the particulars of that position also repose inmemory within the composite processor 13500. Orders for trades in therelevant amounts of bandwidth are funneled to the processor 13500 inreal time as they occur. Orders can be received in several ways. Forexample and most typically, orders may be generated by the brokeragefirm's account executives at the branches 13524 and communicated to theCPU 13500 via the communication path 13520. Orders are also supplied tothe processor 13500 from third party financial sources 13526 (e.g.,other brokerage firms, directly from computer equipped customers, banksor the like) over communication network 13522. Each of the ordersincludes appropriate data fields outlined above and more fully discussedbelow, such as an identification of the office and customer or otheroriginator of order, bandwidth identification, price particulars and soforth.

The processor 13500 first determines whether or not each received ordercan be executed, i.e., “qualifies” the order. There are various reasonswhy an order may not be executed by the market maker. Thus, for example,the customer may seek to sell an amount of bandwidth above the currentbid price or to purchase the amount of bandwidth below the current askedprice. A customer may seek to trade an amount of bandwidth which exceedsthe amount which the particular market maker is willing to accommodate,either in gross or for any one order. Orders not executable, i.e.,orders not qualified, are either stored in memory in the processor 13500for later execution if they become qualified (such as by a favorablechange in the market price for an amount of bandwidth which can thenaccommodate the customer's price limits) or are forwarded to othermarket makers for potential execution over communication links 13518 or13522.

Assuming that an order is executable, the processor 13500 “executes” theorder, appropriately adjusting all balances. Information characterizingthe executed order is sent to computer 13504 for customers of thatbrokerage house or reported to the appropriate other institution vialinks 13518 or 13522. The specifics of appropriate transactions may alsobe reported to the NASD for informational purposes and to theConsolidated Tape Authority and so forth and may become ticker entries.

The bandwidth market system 13514 is apprised of the current quotationsfrom all traders making a market in the subject amounts of bandwidth viacommunication path 13510. The insider market (best bid and asked prices)are communicated to the market maker's processor 13500 via link 13516.When the insider market price changes (a variation in the best bid orbest asked price), the processor 13500 in accordance with the instantinvention signals the trader at station 13508 who is then given theopportunity to readjust his quantity or other market-characterizingcriteria. Following each price change, all non-executable orders storedin the processor 13500 memory are reviewed to determine whether theyhave become executable and, if so, they are in fact executed. Processingthen continues as above described to accommodate the real time orderinflow.

With the above overview in mind, attention is now directed to FIG. 136which is a flow chart of data processing for qualifying for execution anorder communicated from a branch order entry clerk or account executive.Proceeding from a start node 13600, the data fields comprising thisnext-recorded order is loaded (block 13602). The order data fieldsinclude the name of the amount of bandwidth (BWTH); the total amount ofbandwidth for the transaction (AMT); customer identification (CUSTID); abuy vis-a-vis sell bit (B/S); the customer's price limit if he wants oneor, if not, a market order designator (PRIM); special instructions ifany (SP); an order number (.O.RN); and an originator (e.g., office,account executive, or third party institution) identification(.O.RIGID).

The computer includes a number of stored variables characterizing themarket for the bandwidth BWTH which the customer wishes to trade, andthe market maker's own criteria for his participation in BWTH trading.Thus, for example, the computer stores the best bid BSTB(BWTH); the bestasked price BSTA(BWTH); the buy size BSZ(BWTH), i.e., the total amountof bandwidth BWTH the market maker is willing to sell for customerpurchase at the current price; the market maker's sell size SSZ(BWTH);the maximum single order size for bandwidth BWTH which the market makerwill accept .O.RSZ(BWTH); the present amount of bandwidth BWTH long orshort in the market maker's position P.O.S(BWTH)—long being positive andshort being negative; the average cost per unit of bandwidth AVCST(BWTH)for the bandwidth BWTH long or short in the market maker's portfolio;and a running profit total PR(BWTH) of the market maker in the bandwidthBWTH. Block 13604 functioning next determines if order processing isoperative in the normal, automated market mode for the particular amountof bandwidth BWTH. If not (please see below with respect to FIG. 139),program flow branches to block 13606 to store the order for laterretrieval or manual execution. Program flow then returns to start node13600 for retrieval of the next order. Assuming normal automated modeprocessing (YES output of test 13604), program flow continues to test13608 to verify the incoming data (order) to assure correct receptionand internal consistency. If an error occurred, an error message isproduced (block 13610) and program flow returns to the start node 13600for entry of the incoming next order. In the usual case, the order isverified at test 13608, and program flow continues to block 13612 todetermine if the order is a market order or has a limit price (test ofthe PRIM variable).

If the order is not a market order but rather is to be executed at orbetter than a customer specified price (N.O. branch from test 13612),program flow proceeds to block 13616 which distinguishes a customer buy(B/S=B) from a sell order (B/S=S). If it is a buy order (YES, (BUY)branch from test 13616), block 13618 determines if the price at whichthe order is to be executed (contents of PRIM) is greater than or equalto the prevailing asked price (BSTA(BWTH)) of the bandwidth. If thepurchase price of the order to be executed is greater than the bestasked price (YES branch of test 13618), block 13620 determines if theamount of bandwidth AMT in the trade is less than or equal to the amountof bandwidth available for purchase from the market maker, i.e., lessthan the buy size BSZ(BWTH). If so (YES branch of test 13620), theamount of bandwidth AMT in the transaction is compared to the maximumacceptable single order size .O.RSZ(BWTH)—step 13630. Assuming thisfinal criteria is satisfied (N.O. exit), the order is qualified forexecution, and program flow continues to block 13632 where a variablestoring the last position in bandwidth BWTH. LP.O.S(BWTH) is set equalto P.O.S(BWTH). The program thereafter proceeds to order execution asdetailed in FIG. 12 and discussed below.

If the price or buy size tests performed at blocks 13618 and 13620 fail(N.O. branch), or if the order size test performed at block 13630indicates the order is too large (YES branch), the order is notqualified for and will not be executed. When any of these conditionsobtain, program flow branches to block 13626 to store the order forpossible later execution if market conditions or market maker criteriachange. An appropriate report is generated at block 13628 via terminal13508 (FIG. 135) to characterize non-executed order. Thereafter programflow returns to node 13600 to process the next received order. The humanmarket system controller receiving the report may of course over-rideand complete the trade by hand or manual entry—e.g., by authorizing morebandwidth (increasing BSZ(BWTH)) if that criterion inhibited orderexecution.

The foregoing analysis has considered a limit buy order. Returning nowto block 13616, program flow for a customer sale will next beconsidered. If the buy/sell flag signals a sale, program flow branchesto block 13622 where the PRIM limit price is compared to the best bidprice (PRIM.ltoreq.BSTB(BWTH)). If so (YES branch), the amount ofbandwidth AMT in the order is compared against the available sell size(AMT.ltoreq.SSZ(BWTH)). If there is sufficient bandwidth in the sellsize (YES branch), block 13630 determines if the amount of bandwidth(AMT) is greater than the maximum permissible single order size(.O.RSZ(BWTH)). If the amount of bandwidth AMT does not exceed.O.RSZ(BWTH) all criteria are satisfied and the sell order will beexecuted. Processing proceeds to block 13632 where the “last” positionintermediate processing variable LP.O.S(BWTH) is set equal toP.O.S(BWTH), and order execution proceeds as set forth in FIG. 137. Ifany price or sell size test performed at blocks 13622, or 13630 fails,program flow branches to block 13626 for storage and reporting (block13628).

The above description details order qualification for a limit pricetransaction. In a trade that is to be executed at market, the pricetests performed at block 13618 for a buy and block 13622 for a sale areby-passed. Accordingly, when block 13612 determines that the order is tobe executed at market (PR/M=market), block 13614 is reached and branchesthe program to size test 13624 for a customer sale and test 13620 for acustomer purchase. The system then operates in the manner abovedescribed, qualifying the order for execution if the two operative sizecriteria are satisfied or, otherwise, storing the order and reporting(step 13628).

FIG. 137 illustrates data processing for executing and accounting fororders that have been qualified for execution by the order qualifyingdata processing of FIG. 136. A block 13700 determines whether the orderis a customer purchase or sale. If the buy/sell digit signals indicate acustomer buy, program flow branches to block 13702 for decrementing theamount of bandwidth remaining available for customer purchase(BSZ(BWTH)) from the market maker. BSZ(BWTH) is decremented by theamount of bandwidth (AMT) purchased by the customer, i.e.,BSZ(BWTH)=BSZ(BWTH)−AMT. The market maker's position in the bandwidth isalgebraically decremented by the amount of bandwidth purchased.P.O.S(BWTH)=P.O.S(BWTH)−AMT (step 13704). If at block 13700 it isdetermined that the order is a sell, block 13706 decrements sell sizeSSZ(BWTH) by the amount of bandwidth sold to the customer,SSZ(BWTH)=SSZ(BWTH)−AMT. The market maker's position P.O.S(BWTH) in thebandwidth is updated by algebraically incrementing the amount ofbandwidth sold by the customer, P.O.S(BWTH)=P.O.S(BWTH)+AMT (step13708).

After the position P.O.S(BWTH), buy size BSZ(BWTH), and sell sizeSSZ(BWTH) variables have been updated, program flow continues to block13710 where messages confirming execution of the trade are furnished tothe customer account processor 13504 which sends out confirmations ofthe transaction and otherwise performs the necessary accountingfunctions for the customer account. The branch clerk or accountexecutive 13524 is also notified of order execution via link 13520. Theorder variables CUSTID, SP, .O.RN and .O.RIGID are used to appropriatelydistribute trade reporting, proper commission computation and the like.Further, the transaction price is typically communicated to thebandwidth market system 13514 and the various tape services forreporting. The updated internal market maker variables (e.g., SSZ(BWTH),BSZ(BWTH), LP.O.S(BWTH), P.O.S(BWTH)) are stored in memory for use insubsequent order transactions (step 13712). Program flow proceeds toblock 13714 to update the market maker's average per unit of bandwidthinventory cost AVCST(BWTH) and profit PR(BWTH) internal managementvariables for the bandwidth BWTH, the data processing for which isdescribed below in conjunction with FIGS. 137 and 138. After inventoryupdating and profit accounting, data processing exits at node 13716ready to process the next trade.

FIGS. 138 and 139 are the left and right portions of a flow chart forthe data processing of block 13714 (FIG. 137) for updating the inventorycost (average price per unit of bandwidth AVCST(BWTH)) of the bandwidthBWTH and the running profit PR(BWTH) realized from the execution of eachtrade. To this end, the last position of the market maker LP.O.S(BWTH)before the just executed trade is tested to determine whether the marketmaker was previously long or short in the bandwidth BWTH (step 13803).If LP.O.S(BWTH).gtoreq.0 then the market maker's previous position waslong and program flow proceeds to block 13802 where the present (posttrade) position of the market maker P.O.S(BWTH) is tested to determineif it is long (P.O.S(BWTH).gtoreq.0?=YES) or short (N.O.). If the marketmaker's present position is short (N.O. branch), the transaction was abranches to block 13804 to update profit PR(BWTH) for bandwidth BWTH, asby:PR(BWTH)=PR(BWTH)+(LP.O.S(BWTH)*(BSTA(BWTH)−AVCST(BWTH))).  Eq. 1

In the right side of the programming statement of Equation 1, thevariable BSTA(BWTH)-AVCST(BWTH) is the profit (or loss) margin on thesale representing the difference between the current asked priceBSTA(BWTH) at which the trade occurred and the average cost per unit ofbandwidth AVCST(BWTH) of the bandwidth. When multiplied by the amount ofbandwidth previously in the long position (LP.O.S(BWTH)), the rightfactor following the plus sign in the statement of Equation 1 is theprofit (or loss) for the transaction. When added to the previous runningprofit total PR(BWTH), the final result stored in PR(BWTH) is an updatedrunning total of the profit of the market maker in the bandwidth BWTHsince the PR(BWTH) storage array element was last cleared.

Thereafter for the assumed event, program flow proceeds to block 13806where the average cost per unit of bandwidth of the new short positionin the bandwidth is calculated. In this instance, the average cost ofthe bandwidth is equal to the operative asked price, i.e.,AVCST(BWTH)=BSTA(BWTH). FIG. 138 programming then exits at the PROCEEDnode.

If at block 13802 the market maker's present position is long(P.O.S(BWTH).gtoreq.0?=YES), program flow continues to test 13808 wherethe buy/sell digit determines whether the transaction is a customerpurchase or sale. If the trade is a customer sale thus increasing theinitially long LPOS(BWTH) position, it is an inventory transaction andprogram flow branches to block 13810 to update the average cost of theBWTH bandwidth position:AVCST(BWTH)=((AMT*BSTB(BWTH))+(AVCST(BWTH)*LP.O.S(BWTH)))/P.O.S(BWTH).  Eq. 2.

In the statement of Equation 2, AMT*BSTB(BWTH) is the cost of thebandwidth just purchased from the customer and AVCST(BWTH)*LP.O.S(BWTH)is the cost of the previous LP.O.S(BWTH) inventory. Thus, by dividingthe sum of the new and former purchases by the amount of bandwidth heldP.O.S(BWTH) the new average cost AVCST(BWTH) is determined.

If at block 13808 the transaction was determined to be a customerpurchase (market maker sale), program flow proceeds to block 13812 wherethe market maker's profit is updated:PR(BWTH)=PR(BWTH)+(AMT*(BSTA(BWTH)−AVCST(BWTH))).  Eq. 3.

The above FIG. 138 processing has reviewed the three possibilitiesbeginning with a long (positive) market maker bandwidth positionentering a transaction as signaled by the contents of LP.O.S(BWTH).Comparable functioning obtains if the contents of LP.O.S(BWTH) in test13800 are negative, signaling an initial short position (N.O. output oftest 13800). Assuming such an initial short position, program flowpasses to that shown in FIG. 139 which is the analog of that shown inFIG. 138.

In brief a test 13900 of FIG. 139 determines whether the presentposition P.O.S(BWTH) is short or long. If the present position is alsoshort (P.O.S(BWTH)<O), program flow proceeds to block 13902 where thebuy/sell bit is read. If the buy/sell digit indicates a customer buy,the transaction represents an inventory accumulation (the previous shortposition in LP.O.S(BWTH) being increased in P.O.S(BWTH)) and programflow branches (“YES”) to block 13904 where the average cost of thebandwidth is updated:AVCST(BWTH)=((AMT*BSTA(BWTH))+(AVCST(BWTH)*LP.O.S(BWTH)))/P.O.S(BWTH).  Eq. 4.

If at block 13902 the transaction is determined a sell, block 13906updates the profit total:PR(BWTH)=PR(BWTH)+(AMT*(BSTB(BWTH)−AVCST(BWTH))).  Eq. 5.

As a final possibility in FIG. 139, if at block 13900 the market maker'spresent position is long (P.O.S(BWTH)<0?=N.O.), the transaction wasnecessarily a customer sale (market maker purchase), and program flowbranches to block 13908 where the profit PR(BWTH) is updated:PR(BWTH)=PR(BWTH)+(LP.O.S(BWTH)*(BSTB(BWTH)−AVCST(BWTH))).  Eq. 6.

The average cost per unit of bandwidth of the new P.O.S(BWTH) shortposition is the best bid (transaction) price (AVCST=BSTB(BWTH))-block13910. This concludes the profit and cost updating for the transaction.

In most instances, more than one institution makes a market in aparticular amount of bandwidth. Any market maker may change its bid orasked price at any time, transmitting the change to the bandwidth marketsystem via link 13510 as above discussed. In such an instance, it may benecessary to update the market maker's own prices—as where the changeaffects the insider market (best current bid and asked) to afford thecustomer execution at the best prevailing price. FIG. 140 is a flowchart illustrating data processing upon receipt of a new market makerquotation from the bandwidth market system 13514. Beginning at aninterrupt entry node 14000, the system is placed in non-automaticexecution mode (step 14002) which prevents automatic execution of anyorders in the particular amount of bandwidth (BWTH) until the marketmaker has had a chance to respond to the new market prices. If at block14004 it is determined that the best bid BSTB(BWTH) or best askedBSTA(BWTH) price has changed, program flow proceeds to block 14006 wherethe best bid BSTB(BWTH) and/or best asked price BSTA(BWTH) are updatedto the new values received from bandwidth market.

The system then interactively communicates with the trader terminal13508 in block 14008. A prompt appears on trader T1 terminal 13508requesting input regarding possible changes in the maximum acceptableorder size (.O.RS(BWTH)), the amount of bandwidth available for customerpurchase (BSZ(BWTH)), and the amount of bandwidth acceptable forcustomer sales (SSZ(BWTH)). After input of the requested parameters (orinitializing to default values), any orders previously stored in memoryare reprocessed (block 14010) as these orders may now be qualified forexecution due to the change in price or other parameters. After storedorders are reviewed and executed if possible, data processing isrestored to automatic mode (block 14012)—as by simply setting a variableAUT.O. to a predetermined state (e.g., “AUT.O.”), and interrupt mode isexited at node 14014. If at block 14004 it is determined that theinsider market price was not changed by the new market maker quotation,program flow branches directly to block 14012 to restore automatic modeand exit interrupt mode.

The market making system of the above-described invention has thus beenshown to automatically accommodate a random, real time order flow forbandwidth purchases or sales. Incoming orders are first examined toassure that they satisfy currently operative criteria regardingbandwidth price, bandwidth availability and bandwidth order size. Thoseorders being qualified under the existing criteria are executed andprofit and inventory price internal management storage elements areappropriately updated to reflect the several transactions experienced bythe system. Orders not qualified for execution are stored andre-examined from time to time for possible later executability. Thesystem proceeds automatically without human intervention, save to updateoperative market maker order qualification criteria.

In another exemplary embodiment of the present invention, payment of theamount of money that the buyer owes the seller is requested, such asthrough sending the user a bill. Further, the amount of money for thereallocated bandwidth can be received from the seller, where it will beprocessed and sent to the seller, placed in an account of the seller,and/or used to pay amounts of money the seller owes to a third party orfor the transaction fee.

In an alternate embodiment, an operator captures consumer paymentdirectives using a telephone with a small text display. These consumerpayment directives are sent to a central computer operated by thesystem, which then uses an automated teller machine network to obtainfunds in the amount of the payment from the consumer's automated tellermachine-accessible bank account. Once the funds are obtained into anaccount of the system operator, the system determines how to pay thebiller, either by wire transfer, debit network using the biller's bankaccount number, or by check and list.

Several exemplary embodiments of the present invention for performingclearing and settlement functions include bill pay or remittanceprocessing systems as set forth below. For brevity and clarity, theconsumer's account with the biller is referred to herein as the C-B(“consumer-biller”) account, thereby distinguishing that account fromother accounts: the consumer's account with its bank, the biller'saccount with its bank, etc. In most cases, the biller uses the C-Baccount number to uniquely identify the consumer m its records.

Bill pay transactions, however accomplished, have several commonelements, which are either explicit or can be implied by the nature ofthe transaction. The first is presentment: a biller presents theconsumer with a bill showing the C-B account number and an amount due.The second common element is payment authorization: the consumerperforms some act (e.g., signs a check or other negotiable instrument)which authorizes the consumer's bank to transfer funds from theconsumer's account to the biller; this element might occur afterpresentment or before (as in the case of pre-authorized withdrawals),and need not be explicit (delivery of a check is implicit authorizationfor the amount of the check). This element is almost always accompaniedby some action by the consumer bank to ensure payment to it from theconsumer, such as withdrawing the funds from consumer's bank account,posting the amount to the consumer's credit card account or line ofcredit, etc. The third common element is confirmation to the consumer ofthe funds withdrawal. The fourth common element is the crediting of thepayment to the C-B account. In some cases, the biller acknowledges thecrediting with nothing more than refraining from sending a past duebill.

FIGS. 141 through 143 show block diagrams of bill pay systems whichimplement these four common elements in different ways. In those blockdiagrams, the participants are shown in ovals, and the flow of materialis shown by numbered arrows roughly indicating the chronological orderin which the flows normally occur. The arrows embody a link, which is aphysical link for paper flow, a data communications channel from onepoint to another, or other means for transferring material. Whereseveral alternatives exist for a flow, the alternatives might be shownwith a common number and a letter appended thereto, such as “2” and“2A”. “Material” refers to documents and/or information, whetherpaper-based (“postal mail”), electronic (e-mail, messages, packets,etc.), or other transfer medium. In most cases, the material which isflowing is shown near the arrow which links the material's source anddestination.

FIG. 141 is a block diagram of a paper bill pay system 14100, whereinbillers send paper bills or coupon books to consumers and consumersreturn paper checks and payment coupons. The proof and capture processfor these remittances is highly automated, except for the aptly-named“exception items.”

In bill pay system 14100, the participants are a consumer C (14102), abiller B (14104), consumer C's bank (Bank C) 14106, biller B's bank(Bank B) 14108 and, optionally, a lockbox operator 14110. Bank Cmaintains consumer C's bank account 14112 and a clearing account 14114,while Bank B maintains biller B's bank account 14116 and a clearingaccount 14118. The material passing between the participants includes abill 14120, a remittance 14122 comprising a check 14124 and a paymentcoupon 14126, an account statement 14128, an accounts receivable (“A/R”)data file 14130, an encoded check, which is check 14124 with MICRencoding, and possibly a non-sufficient funds (“NSF”) notice 14136.

The flow of material between participants in bill pay system 14100begins (arrow 1) when biller B sends bill 14120 through the postal mailsto consumer C. Bill 14120 indicates a C-B account number and an amountdue, and is typically divided into an invoice portion to be retained byconsumer C and a payment coupon portion to be returned, each of whichshows the C-B account number and amount due.

In response to receiving bill 14120, consumer C sends remittance 14122to biller B (arrow 2). Remittance 14122 contains check 14124 drawn onconsumer C's account 14112 at Bank C and payment coupon 14126,preferably included in the return envelope provided by biller B. BillerB then MICR encodes the amount of the remittance onto check 14124 tocreate encoded check 14134, and deposits check 14134 (arrow 3), andcredits consumer C's account in biller B's customer general ledger(“G/L”) account database 14132. Alternately, remittance 14122 is mailedto lockbox operator 14110 (arrow 2 A), which opens remittance 14122,MICR encodes check 14124 to create encoded check 14134, captures the C-Baccount number and amount of the check electronically to create A/R datafile 14130. Lockbox operator 14110 then sends AIR data file 14130 tobiller B, and sends encoded check 14134 to Bank B to be credited tobiller B's account 14116 (arrow 3 A). Because check 14134 is signed byconsumer C, it authorizes Bank C to pass the amount of the check to BankB after Bank B presents the check to Bank C. The signed check serves asthe second common element of a bill pay transaction: authorization.

However encoded check 14134 reaches Bank B, Bank B then presents check14134 to Bank C, along with other checks received by Bank B which weredrawn on Bank C accounts (arrow 4). When Bank C receives check 14134, itwithdraws the amount of the check from C's account 14112 and passes thefunds to B's account at Bank B (arrow 5). Actually, this funds transferoccurs from C's account 14112 to clearing account 14114, to clearingaccount 14118, and then to B's account 14116, possibly with one or moreintermediate settlement banks in the chain (omitted for clarity).

If the funds are not available in C's account 14112 to cover the amountof check 14134 or if C's account 14112 has been closed, then Bank C willreturn the check to Bank B, who will in turn return the check to billerB. Biller B will then have to reverse the transaction crediting consumerC's C-B account in G/L database 14132 and renegotiate payment fromconsumer C, all at significant cost to biller B. Even if check 14134clears, the process of providing good funds to biller B is notinstantaneous, since check 14134 must physically travel from biller B toBank B to Bank C. Of course, if biller B has sufficient credit ratingwith Bank B. Bank B could move the funds from clearing account 14118 toB's account 14116 when Bank B receives check 14134.

At some time following the clearing of check 14134, biller B alsoupdates its NR records in G/L database 14132 to credit consumer C's C-Baccount, and Bank C confirms to consumer C the withdrawal of the amountof check 14134 by listing it on statement 14128 and/or by the return ofcancelled check 14134. If the check does't clear, then biller B andother parties to the transaction unwind the payment.

One benefit of bill pay system 14100 is that, for nearly all billers,there is no need for biller enrollment (any consumer can pay a billerwithout prior arrangements or a waiting period).

Similar to the above system is the GIRO systems used in severalcountries in Northern Europe. The GIRO) systems were set up there eitherby the government or the postal system, which is a traditional supplierof financial services. In a GIRO system, it is mandated that each billpayer and each bill payee be assigned a GIRO number. The biller sendsbills with its biller GIRO number on the payment coupons. The layout,shape, etc. of the GIRO payment coupons is also mandated, so a consumerwill receive similar coupons with each bill. After reviewing the bill,the consumer simply adds their GIRO number to the payment coupon andsigns it. Thus, the payment coupon also serves as a banking instrumentsimilar to a check.

The consumers in a GIRO system are comfortable with it because thepayment coupons all look the same. The consumer then mails the paymentcoupons to either a GIRO central processor or its own bank, which thensorts them by biller GIRO number and submits them to the biller. Sincethe payment coupons are all in a fixed format, they can be easilyencoded in a machine readable format, including the payment amount,which the biller pre-prints onto the coupon. If the consumer gives theirGIRO number to the biller, the biller can also pre-print that number onthe payment coupon as well. Since all the coupons look the same, thebanks can process them like a check and achieve economies of scale.

FIG. 142 is a block diagram of an alternate bill pay system 14200, whichreduces the effort required on the part of consumer C relative to billpay system 14100, but which increases costs for billers. The differencebetween bill pay system 14200 and bill pay system 14100 is that consumerC initiates payment electronically (or by other non-check means).

Bill pay system 14200 includes most of the same participants as bill paysystem 14100: consumer C, Bank C. Bank B, possibly a lockbox operator(not shown in FIG. 142), and biller B, who is typically not a proactiveor willing participant in this system. Additionally, a service bureau S(14202) and a Bank S (14204) are participants, with service bureau Smaintaining a service database 14206 which is used to match bill paymentorders with billers. The material passing among the participantsincludes bill 14120, as in the prior example, as well as a bill paymentorder 14208 and related confirmation of receipt 14216 (both typicallytransmitted electronically), an enrollment package 14209, a billerconfirmation 14210, a bill payment 14212 (“check and list”) whichincludes check 14214.

In bill pay system 14200, consumer C enrolls in bill pay system 14200 bysending service bureaus (arrow 1) enrollment package 14209 comprising avoided check and list of billers to be paid by S on behalf of C. Ssubsequently sends biller B biller confirmation 14210 (arrow 2) toverify (arrow 3) that C is indeed a customer of B.

With bill pay system 14100 (FIG. 141), consumer C identifies the properbiller by the remittance envelope and the payment coupon, neither ofwhich is available to service bureau S in bill pay system 14200. Thus,service bureau S must identify the correct biller for each bill paymentorder some other way. Typically, service bureaus does this by askingconsumer C for biller B's name, address, telephone number and consumerC's account number with biller B (“C-B account number”). Since neitherBank C nor service bureau S may have any account relationship withbiller B, they must rely upon consumer C's accuracy in preparingenrollment package 14209 which is used to put biller B's informationinto service database 14206. Service bureau S typically requires thisinformation only once, during biller enrollment, storing it to servicedatabase 14206 for use with subsequent payments directed to the samebillers. Of course, if this information changes, service database 14206would be out of date. If this information is wrong to start with, orbecomes wrong after a change, service bureaus might send funds to thewrong entity. What a service bureau will often do to reduce errors inbiller identification is to not allow the consumer to make payments to abiller for a specified time period after enrolling the biller, to allowservice bureau S to verify biller B and the C-B account structure withbiller B in a biller confirmation message 14210.

Sometime later, consumer C receives bill 14120 (arrow 4) and initiatesbill payment order 14208 (arrow 5). Bill payment order 14208 includesauthorization for service bureaus to withdraw funds from C's account14112 to pay bill 14120, the amount to pay (not necessarily the amountdue on bill 14120), the date on which to pay, and some indication ofbiller B as the payee. Service bureau S responds with confirmation ofreceipt 14216 indicating that bill pay order 14208 was received (arrow6). Consumer C can send bill pay order 14208 in any number of ways, suchas using a personal computer and modem, directly or through a packet ofother data network, via an automatic teller machine (ATM), video touchscreen, a screen phone, or telephone Touch-Tone™ pad (TTP) interactingwith a voice response unit (VRU). However this is done, service bureau Sreceives one or more bill pay orders from consumer C. These orders couldbe instructions to pay some amount for a bill or a set amount of moneyat periodic intervals.

Assuming that service bureau S has correctly identified and confirmedthat biller B is a biller which consumer C desired to pay with bill payorder 14208, then service bureau S passes the funds to biller B asbiller payment 14212 (arrow 12) after securing funds to cover theremittance. Bill payment can take several forms as discussed below. InFIG. 142 a “check and list” is depicted, which is common in the art. Acheck and list comprises a single payment, check 14214 drawn on servicebureau S's account 14218, accompanied by a list of all consumers whoseindividual remittances are aggregated in the single check. The listshows C-B account numbers and payment amounts for each consumer includedon the list which should total to the amount of the single check 14214.This process brings some economies of scale to service bureau S,although at additional expense to biller B. In some cases, rather thanendure the expense of checking over the list to ensure it matches thecheck amount, biller B will refuse to accept that form of payment.

To secure funds, service bureau S clears check 14134 through Bank S14204 drawn on C's account 14112 at Bank C (arrows 7-11). S then sendspayment 14212 to biller B (arrow 12). Biller B must treat payment 14212as an exception item, posting G/L database 14132 from the list insteadof payment coupons as in bill pay system 14100. Biller B deposits check14214 with Bank B (arrow 13) who clears it through Bank S and asettlement account 14220 to obtain good funds for B's account 14116(arrows 14-142). If the bill pay transaction goes through, Bank C willconfirm that it went through by sending a confirmation (typicallystatement 14128) to consumer C. The cycle is completed (arrow 18) whenconsumer C receives notice that funds were withdrawn from C's account14112 for the amount entered in bill pay order 14208.

Several variations of the system shown in FIG. 142 are used today. Inone variation, S sends an individual check 14134 (unsigned—signature onfile) drawn on C's account 14112 to biller B in response to bill payorder 14208. This clears as in bill pay system 14100 (FIG. 141, arrows3-7), but B must process these one at a time, since they are exceptionitems. This reduces the possibility that B will refuse to process check14134, since it only differs from the expected payment form by lacking acoupon. Thus, biller B is less likely to refuse this form of paymentover a check and list, and the biller is less likely to have problems ofthe list not balancing or having bad account numbers.

In a second variation, instead of a check from Bank C cleared throughBank S to credit S's account 14218, S has Bank S submit a debit to C'saccount 14112 through the Automated Clearing House (“ACH”) (see FIG. 143and accompanying text). In a third variation, in place of arrows 12-17,(“check and list”), S may send AIR data and a credit to biller B throughone path of: i) Bank S to ACH to Bank B to biller B or ii) MasterCard'sRPS (Remittance Processing System) to Bank B to biller B. As used here,the RPS is merely an alternative to the ACH. In a fourth variation, acombination of the second and third variations, S sends simultaneous ACHtransactions (debit account 14112 and credit account 14116).

FIG. 143 is a block diagram of yet another bill pay system 14300, whichis usually used with billers who expect regular, periodic and smallpayments. Relative to the previously discussed bill payment systems,billers generally prefer bill pay system 14300 when they are set up tohandle such transactions.

Bill pay system 14300, while providing more efficient remittanceprocessing by biller B due to its increased control over the process,leaves consumer C with very little control over the bill paytransactions after the relationship is set up, since consumer C istypically required to give biller B an open ended authorization towithdraw funds. Furthermore, bill pay system 14300 is not appropriatefor all types of billers, such as those who do not have an on-going andpredictable relationship with consumers.

FIG. 143 introduces several new items which flow among the participantsincluding ACH 14302, such as a voided check 14306, a debit advice 14308,a pre-authorization message 14310, and a debit request message 14312. Inbill pay system 14300, biller B is required to maintain an additionalcustomer database 14304.

For bill pay system 14300 to work properly, there is an enrollment phase(arrows 1-4) and an operational phase (arrows 5-13). In the enrollmentphase, consumer C gives biller B voided check 14306, which biller Busesto initiate pre-authorization message 14310. Biller B is not allowed byACH 14302 to directly submit pre-authorization message 14310, whichmeans Bank B, an ACH Originating Financial Depository Institution(OFDI), must get involved and submit message 14310 to Bank C, an ACHReceiving Financial Depository Institution (RFDI). Afterpre-authorization message 14310 is accepted by Bank C, Bank C willaccept Bank B initiated automatic debits to be posted to C's account14112. In the operational phase, biller B queries customer database14304 to determine if consumer C is enrolled as an automatic debitor. Ifso, biller B optionally sends debit advice 14308 to consumer C, andsends debit request message 14312 to biller B's bank, Bank B, which thensends it through the ACH 14302 to Bank C, which debits C's account 14112and transfers the funds to biller B's account 14116 via the ACH. Thetransaction is confirmed to consumer C on bank statement 14128 sent toconsumer C from Bank C. In this system 14300, debit request message14312 might be rejected by Bank C for, among other reasons,non-sufficient funds, resulting m the flows along arrows 10-12.

Centralized vs. De-centralized DVNS

One issue that the bandwidth market raises is the question of where toplace certain DVNS functions. The current strategy of many bandwidthproviders is built upon a DVNS that runs and operates completely at thedistributor. However, there may be some benefit to a bandwidth providerin moving part of the DVNS functions from the distributor to a NetworkBusiness Center (NBC) or Network Operations Control Center (NOCC). Inparticular, by placing most of the DVNS Operations Manager functionalityat a centralized location, the bandwidth provider may have a much betterview on the state of the network. In an exemplary model, each DVNS isresponsible for setting up calls for their CPEs. While the DVNS has agood idea of how its customers are using the network, the NOCC may nothave a good handle on the overall network. By moving call setup to acentral location, the bandwidth provider's operators can get a completeoverview of what is happening on the network at all times. Thiseliminates the possibility of a DVNS over-allocating bandwidth to itscustomers.

In addition to providing better network management capabilities,centralized call setup opens up some interesting possibilities. As asingle system will know the state of the network at all times, it couldpotentially increase prices in those areas where demand is greatest.Armed with real-time call information, a centralized management systemcould analyze the information and automatically raise the bandwidthproviders' wholesale prices in high traffic areas. On a similar note,the bandwidth providers could also lower their prices in areas where thenetwork is underutilized in order to stimulate demand. Assumingbandwidth demand is elastic, this would allow a bandwidth provider toprice its wholesale services at the exact point where supply hitsdemand, optimizing its revenues.

In order to maintain a sense of autonomy, a bandwidth provider couldoffer its distributors a series of APis that allow them access toOperations Management functions at the central location. In addition, agraphical user interface could be developed to permit remoteconfiguration and management. The central application could be designedin such a way that distributors would only have access to their managedpartition.

One downside of this approach is the need to split the Operations andService Managers. As the Service Manager provides the distributors withspecific functions that map their value added services, or content, tothe bandwidth providers, they will need to be tailored to eachdistributor. For this reason, the Service Manager will probably need toreside at the distributor's location. Any hooks between the ServiceManager and Operations Manager that are required to map content to abandwidth provider's services, will have to traverse the bandwidthprovider's network.

Another downside to a centralized call setup mechanism is that itrepresents a single point of failure. However, this could be solved byproviding a backup system located at another site.

It is important to note that the bandwidth market will work irrespectiveof where the DVNS Operations Management functions are located.

Capacity Management/Customer Questionnaires

The service provider may use a process that basically uses what iscalled “the 3 minute switch time” which is a expected time of telephoneusage for a call to be made from one party to another. This is the basisfor capacity management. With data, video and other communicationmethods coming into the marketplace this method becomes more and moreobsolete. By developing detailed Demand Management models, the presentinvention allows one to look at the causes for usage of this capacitybased on Economics, Demographics, Population, Business/Retail shifts andthe impact it will have on the Network capacity. The Business goals andobjectives of the Service Providers may also be integrated to establishan approved working model (approved model by the Service Provider) thatmay be executed over the eSpace as part of a collaborative process in anend to end supply chain. This may be applied at any point of the supplychain.

Theses Demand Management models may also be built based on a causalforecast standpoint based on demographics and economic models based ondemand to support the business goals and objectives of a serviceprovider. Demand planning tools are used to integrate information intohow clients meet their individual business demands. They choose whichone they want, and they execute it through the supply chain. Withmodeling the issues focus more on, “What do I need and how do I deployit and determine optimal deployment.” Also, there may be a lot ofinstallation planning by gathering information through the supply chainhow it should be built, when it should be built and where to build it.Quickly and expeditiously. So, what it becomes is multi-companymaterials management utilizing e-tools.

While various embodiments have been described above, it should beunderstood that they have been presented by way of example only, and notlimitation. Thus, the breadth and scope of a preferred embodiment shouldnot be limited by any of the above described exemplary embodiments, butshould be defined only in accordance with the following claims and theirequivalents.

What is claimed is:
 1. A system for order management in a network-basedsupply chain framework, comprising: a processor connected to anelectronic communications network and a display; and a memory havinginstructions that, when executed by the processor, cause the processorto perform operations comprising: receiving a customer selection of afirst offering; automatically displaying to the customer in response tothe customer selection, using the processor to transmit data for displaythrough the electronic communications network, a graphical userinterface is divided into an information region and a shopping basketregion that is configured to be locked in display while the informationregion is scrolled, where the information region includes offeringspecifications of a first offering, one or more images of the firstoffering, the one or more images of the offering reflecting one or moredefault features of the first offering; providing, in the informationregion of the graphical user interface and for display to the customer,one or more selectable user interface elements for one or more availablefeatures for the first offering; receiving, via transmission through theelectronic communications network, a customer selection of an availablefeature of the one or more available features for the first offeringmade through the graphical user interface by a selection of theselectable user interface element corresponding to the availablefeature; generating one or more updated images of the first offeringreflecting the selected available feature for the first offering;providing, in the information region of the graphical user interface andfor display to the customer in response to the customer selection of theavailable feature, the one or more updated images of the first offering,the one or more updated images of the first offering reflecting theselected available feature for the first offering; receiving from thecustomer, via transmission through the electronic communicationsnetwork, a selection for purchase of the first offering with theselected available feature made through the graphical user interface;and providing, in the shopping basket region of the graphical userinterface and for display to the customer in response to the selectionfor purchase of the first offering with the selected available featuremade through the graphical user interface, an indication of the firstoffering with the selected available feature made through the graphicaluser interface.
 2. A system as recited in claim 1, wherein theoperations comprise: identifying a user profile of the customer; andobtaining at least one of the one or more default features from the userprofile of the customer.
 3. A system as recited in claim 1, wherein theoperations comprise: determining a geographic location of the customer;and determining a price for the first offering having the one or moredefault features and the selected additional available feature at thegeographic location of the customer; and providing, for display to thecustomer, the determined price for the first offering having the one ormore default features and the selected additional available feature atthe geographic location of the customer.
 4. A system as recited in claim1, wherein the operations further comprise: generating, using theprocessor, a price of the first offering based on the customer selectionof the available feature of the first offering.
 5. A system as recitedin claim 1, wherein the operations comprise: determining that one ormore features of the first offering are unavailable for the customer;and generating a presentation that omits respective images ofunavailable features of the first offering.
 6. A non-transitorycomputer-readable storage medium containing instructions which, whenexecuted on a processor, perform operations for order management in anetwork-based supply chain framework, the operations comprising:receiving a customer selection of a first offering; automaticallydisplaying to the customer in response to the customer selection, usingthe processor to transmit data for display through the electroniccommunications network, a graphical user interface is divided into aninformation region and a shopping basket region that is configured to belocked in display while the information region is scrolled, where theinformation region includes offering specifications of a first offering,one or more images of the first offering, the one or more images of theoffering reflecting one or more default features of the first offering;providing, in the information region of the graphical user interface andfor display to the customer, one or more selectable user interfaceelements for one or more available features for the first offering;receiving, via transmission through the electronic communicationsnetwork, a customer selection of an available feature of the one or moreavailable features for the first offering made through the graphicaluser interface by a selection of the selectable user interface elementcorresponding to the available feature; generating one or more updatedimages of the first offering reflecting the selected available featurefor the first offering; providing, in the information region of thegraphical user interface and for display to the customer in response tothe customer selection of the available feature, the one or more updatedimages of the first offering, the one or more updated images of thefirst offering reflecting the selected available feature for the firstoffering; receiving from the customer, via transmission through theelectronic communications network, a selection for purchase of the firstoffering with the selected available feature made through the graphicaluser interface; and providing, in the shopping basket region of thegraphical user interface and for display to the customer in response tothe selection for purchase of the first offering with the selectedavailable feature made through the graphical user interface, anindication of the first offering with the selected available featuremade through the graphical user interface.
 7. A non-transitorycomputer-readable storage medium as recited in claim 6, wherein theoperations comprise: identifying a user profile of the customer; andobtaining at least one of the one or more default features from the userprofile of the customer.
 8. A non-transitory computer-readable storagemedium as recited in claim 6, wherein the operations comprise:determining a geographic location of the customer; and determining aprice for the first offering having the one or more default features andthe selected additional available feature at the geographic location ofthe customer; and providing, for display to the customer, the determinedprice for the first offering having the one or more default features andthe selected additional available feature at the geographic location ofthe customer.
 9. A non-transitory computer-readable storage medium asrecited in claim 6, wherein the operations comprise: generating a priceof the first offering based on the customer selection of the availablefeature of the first offering.
 10. A non-transitory computer-readablestorage medium as recited in claim 6, wherein the operations comprise:determining that one or more features of the first offering areunavailable for the customer; and generating a presentation that omitsrespective images of unavailable features of the first offering.
 11. Acomputer-implemented method comprising: receiving a customer selectionof a first offering; automatically displaying to the customer inresponse to the customer selection, using the processor to transmit datafor display through the electronic communications network, a graphicaluser interface is divided into an information region and a shoppingbasket region that is configured to be locked in display while theinformation region is scrolled, where the information region includesoffering specifications of a first offering, one or more images of thefirst offering, the one or more images of the offering reflecting one ormore default features of the first offering; providing, in theinformation region of the graphical user interface and for display tothe customer, one or more selectable user interface elements for one ormore available features for the first offering; receiving, viatransmission through the electronic communications network, a customerselection of an available feature of the one or more available featuresfor the first offering made through the graphical user interface by aselection of the selectable user interface element corresponding to theavailable feature; generating one or more updated images of the firstoffering reflecting the selected available feature for the firstoffering; providing, in the information region of the graphical userinterface and for display to the customer in response to the customerselection of the available feature, the one or more updated images ofthe first offering, the one or more updated images of the first offeringreflecting the selected available feature for the first offering;receiving from the customer, via transmission through the electroniccommunications network, a selection for purchase of the first offeringwith the selected available feature made through the graphical userinterface; and providing, in the shopping basket region of the graphicaluser interface and for display to the customer in response to theselection for purchase of the first offering with the selected availablefeature made through the graphical user interface, an indication of thefirst offering with the selected available feature made through thegraphical user interface.
 12. The method of claim 11, comprising:identifying a user profile of the customer; and obtaining at least oneof the one or more default features from the user profile of thecustomer.
 13. The method of claim 11, comprising: determining ageographic location of the customer; and determining a price for thefirst offering having the one or more default features and the selectedadditional available feature at the geographic location of the customer;and providing, for display to the customer, the determined price for thefirst offering having the one or more default features and the selectedadditional available feature at the geographic location of the customer.14. The method of claim 11, comprising: generating a price of the firstoffering based on the customer selection of the available feature of thefirst offering.
 15. The method of claim 11, comprising: determining thatone or more features of the first offering are unavailable for thecustomer; and generating a presentation that omits respective images ofunavailable features of the first offering.